GNP and GNI - shares in the income are profits of the...

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GNP and GNI: Whereas Gross National Product (GNP) is the total of the market price values of all goods and services, Gross National Income (GNI) is the aggregate income received by all members of the society engaged in productive activities. Whenever goods are produced and sold, the total yield gets distributed among various agents of production. There are theoretically four such categories which contribute to productive activity and receive income. The four
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Unformatted text preview: shares in the income are profits of the producer (P), wages of the labor (W), rent of the owner of land and natural resources (R) and interest payment on loans and capital transactions (i). Therefore the value of GNI can be stated as : GNI W + R + P + I For every income generated, there is some corresponding productive activity performed and vice versa. Therefore, the two values GNI and GNP must be conceptually identical. GNI = GNP...
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This note was uploaded on 11/17/2011 for the course EC ec 201 taught by Professor - during the Fall '10 term at Montgomery.

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