Is GNP or GDP a better indicator of the social welfare of a nation’s inhabitants? Concisely...
Is GNP or GDP a better indicator of the social welfare of a nation’s inhabitants? Concisely explain your reasoning.
Homework Answers
GNP refers to the total income of all the population of the country, including any income that they have earned from abroad (e.g. profits, dividends, interest, rents, inward remittances from relatives who have emigrated etc)
GDP refers to the total income (i.e. total output) that has been created within the country including any income that is attributable to foreigners (e.g. profits, dividends, interest, rents, outward remittances from immigrants)
Economic welfare is an exclusive concept that is neither
measured nor compared by the GNP of a nation.
GNP or the Gross National Product of a nation means the aggregate
gross value of all the goods and services produced by that nation
in a single fiscal year minus the revenue of exprts and
imports.
Thus GNP is a measure of the national economic output.
However, national output is in itself a skewed concept.
Consider a nation with 100 citizens and a GNP of 1 trillion ₹ . Now
suppose 90% of this wealth belongs to only 10-15 citizens of the
nation.
Now consider another case when the same nation has it's wealth
eually distributed among all of it's citizens, such that everyone
is worth 10 billion ₹ each. (Whoaaah! dats a lot of money for a
single example.)
In such a case the GNP of a nation will still be 100 trillion ₹ but
the overall welfare of the people have chances of neing better in
the latter case.
Add Answer to:
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#1 Show All Your Work 1. “GDP is simply a count of the quantity, and is...
#1
Show All Your Work 1. “GDP is simply a count of the quantity, and is not a monetary measure, thus GDP is a good measure of the social welfare of society.” Is this statement true or false? Carefully Explain your answer.
Which of the following best describes the relationship between a stock concept and a flow concept?...
Which of the following best describes the relationship between a
stock concept and a flow concept?
A stock concept has a time period
associated with it, whereas a flow concept is an amount of
something at a given point in time.
A stock concept is an amount of something at a given point in
time, whereas a flow concept has a time period associated with
it.
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4. (15 points) Use indifference curves as an indicator of national welfare to evaluate the following statement:_Suppose the price of a country's exports increases relative to its imports. This only benefits the country if it increases its quantity of exports in response. If a country does not increase exports when their relative price rises, then the price increase will not increase welfare." State your answer and explain in words. You might use a graph to help in your explanation.
#1
Show All Your Work 1. “GDP is simply a count of the quantity, and is not a monetary measure, thus GDP is a good measure of the social welfare of society.” Is this statement true or false? Carefully Explain your answer.
Which of the following best describes the relationship between a
stock concept and a flow concept?
A stock concept has a time period
associated with it, whereas a flow concept is an amount of
something at a given point in time.
A stock concept is an amount of something at a given point in
time, whereas a flow concept has a time period associated with
it.
______________________________________________________________________________
What expenditure category of production is largest for most
countries?
Investment
Consumption
Net...
Q1 Which of the following are included and which are excluded in calculating this year's GDP. Explain in each instance. a. A monthly scholarship cheque received by an economics student b. The purchase of an almost new tractor by farmer Kojo C. The cashing in of a savings bond d. An increase in business inventories e. Tim Horton's purchases a corner grocery store f. Fearless Qweenie Kong, a stuntwoman, purchases a life insurance policy for a billion dollars ($) g....
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