____________ measures the market value of all final goods and services produced by a country’s citizens or residents
The correct answer is Gross National Product.
- Gross National Product measures the market value of all final goods and services produced by a country’s citizens or residents.
Key Points
- Gross National Product (GNP):
- GNP refers to the money value of the total output of production of final goods and services produced by the nationals of a country during a given period of time, generally a year.
- It is calculated using the formula:
- GNP= Consumption + Gross Private Investment + Government Expenditure + Net Exports + Net Factor Income from Abroad.
Additional Information
- Net domestic product (NDP):
- It is an annual measure of a nation's economic output that is calculated by subtracting depreciation from the gross domestic product (GDP).
- Gross Domestic Product:
- It is the total money value of all final goods and services produced within the country's geographical boundaries during a given period of time.
- GDP = C + G + I
- C = Consumption expenditure, G = Government expenditure and I = Investment expenditure
- Net National Product (NNP):
- NNP is obtained by subtracting depreciation value (i.e. capital stock consumption) from GNP.
