Nakedecon5

Nakedecon5 - DP 9-10 GNP per capita is the gross national...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
DP 9-10 GNP per capita is the gross national product of the country divided by the total population in other words, average income earned by each citizen of the country. "Gross" indicates that the value lost through the "wear and tear" of capital used in production that is not deducted from the value of total output. If it were deducted, we would have a measure called net domestic product (NDP), also known as national income. The words "product" and "income" are often used interchangeably, so GNP per capita is also called income per capita. GNP is used to measure economic growth. It is generally synonymous with the health of the economy and economic progress. GNP is considered a measure of the relative success of different countries. As you can see, when using GNP as a measure, Switzerland has a fairly high standard of living, the U.S. has a slightly lower standard of living, and countries like China are two orders of magnitude lower. What is the GNP made up of? It is the flow of money from households to
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/02/2010 for the course ECON 110 taught by Professor Vernon during the Summer '07 term at BYU.

Page1 / 2

Nakedecon5 - DP 9-10 GNP per capita is the gross national...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online