ge9 - Measuring Economic Development We will use a number...

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

View Full Document Right Arrow Icon
Measuring Economic Development We will use a number of terms to describe economic development in various countries. It is important for you to get the terms straight. They are as follows: -Gross Domestic Product is the sum of value added by resident firms, households, and governments operating in an open economy. -Gross National Product is the sum of value added by resident firms, households, and governments operating in an open economy, plus income from nonresident sources abroad. Gross national product is increasingly being referred to as Gross National Income (GNI). We use GDP, GNP, and GNI to compare the economic development of a single country over time, and to compare the economic development of multiple countries at the same time. To make the comparison meaningful, however, we must adjust these figures to reflect different costs of living—a practice known as conversion based on purchasing power parity. For example, Switzerland’s GDP is greater than the United States’ GDP, but the
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 02/05/2011 for the course GEB 3373 taught by Professor Crum during the Spring '10 term at University of Florida.

Page1 / 2

ge9 - Measuring Economic Development We will use a number...

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