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Section A: Index like GNI, GNP and GDP and their variations estimate the absolute and relative
income of a country. These data create meaningful, first-order indicators of a country's
performance and potential. Explain and compare the difference among GNI, GNP and GDP
Solution
GNI (Gross national income) : It is the sum of value added by all domestic producers plus any
taxes (minus subsidies) not inlcluded in the valuation of output plus net receipts of primary
income (compensation of employees, interest payments , dividends) from abroad. GNP is equal
to GDP plus income paid into the country by other countries for things as interest and dividends.
GNP (Gross national product) : It is the total market value of all goods and services produced by
domestic residents . It includes domestic residents earnings and investment abroad . It doesn't
include earnings by foreign residents while inside the country.
GDP (Gross national product): It is a total value of goods and services produced in the country
within a given time period. It is equal to consumption, investment, government spending and net
exports (exports-imports) . It includes earnings made by foreigners while inside the country.It
doesn't not include earnings by its residents while outside of the country.
GDP and GNI refers to the economic income within borders of the country while GNP refers to
the economic income by the country's residents.

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Section A Index like GNI, GNP and GDP and their variations estimate .pdf

  • 1. Section A: Index like GNI, GNP and GDP and their variations estimate the absolute and relative income of a country. These data create meaningful, first-order indicators of a country's performance and potential. Explain and compare the difference among GNI, GNP and GDP Solution GNI (Gross national income) : It is the sum of value added by all domestic producers plus any taxes (minus subsidies) not inlcluded in the valuation of output plus net receipts of primary income (compensation of employees, interest payments , dividends) from abroad. GNP is equal to GDP plus income paid into the country by other countries for things as interest and dividends. GNP (Gross national product) : It is the total market value of all goods and services produced by domestic residents . It includes domestic residents earnings and investment abroad . It doesn't include earnings by foreign residents while inside the country. GDP (Gross national product): It is a total value of goods and services produced in the country within a given time period. It is equal to consumption, investment, government spending and net exports (exports-imports) . It includes earnings made by foreigners while inside the country.It doesn't not include earnings by its residents while outside of the country. GDP and GNI refers to the economic income within borders of the country while GNP refers to the economic income by the country's residents.