Q1. What is the difference among GNP and GDP?

Ans) The difference between GNP and GDP are because follow:


An estimated worth of the total worth of production and services, manufactured in one year by labor and property supplied by the residents of a country. Allocates creation based on location of control.

GNP=GDP + NR (Net income influx from property abroad or perhaps Net Income Receipts) - NP (Net repayment outflow to foreign assets).


Nearly value in the total really worth of a country's production and services, within just its border, by it is nationals and foreigners, computed over the course on one season. GDP sama dengan consumption & investment & (government spending) + (exports − imports). Defines development based on the geographical location of production

Q2. Can GNP be greater than GDP?

When the measurements include simply incomes received or costs made by a country citizen's, in this way GNP. If the calculations are made of all earnings (or every expenditures) that originated having a country's restrictions, including those of foreign people, the result is GROSS DOMESTIC PRODUCT. GNP may be lesser and can be greater too than GDP. It can be lesser if a country's citizen or perhaps firms keep large amount of the stocks and bonds of other countries' firms or perhaps governments, and receive cash flow from them, GNP may be higher than GDP. In Saudia Persia, for instance, GNP exceeded GDP by six percent in 1994. Q3. Why do we use the market value in calculating GROSS DOMESTIC PRODUCT?

Ans) The true market value is basically the retailer selling price at which home purchases goods and services. The keeping track of of simply goods manufactured in a country simply cannot help to differentiate between the items which differ in their value. One example is it's quite easy to see which it doesn't appear sensible to count number an lemon the same in GDP as a television, neither does it seem sensible to rely the television exactly like a car. The GDP calculation accounts with this by adding the market value of each and every good or perhaps service...

Juice Folks Case Study Analysis Essay