Question and answer
How is the standard of living measured.? A the GDP plus the GNP B by the real GDP per capita C total production output per year D aggregate supply minus aggregate demand
GDP can be contrasted with gross national product (GNP) or gross national income (GNI). The difference is that GDP defines its scope according to location, while GNP defines its scope according to ownership. [ In a global context, world GDP and world GNP are, therefore, equivalent terms. GDP is product produced within a country's borders; GNP is product produced by enterprises owned by a
country's citizens. The two would be the same if all of the productive enterprises in a country were owned by its own citizens, and those citizens did not own productive enterprises in any other countries. In practice, however, foreign ownership makes GDP and GNP non-identical. Production within a country's borders, but by an enterprise owned by somebody outside the country, counts as part of its GDP but not its GNP; on the other hand, production by an enterprise located outside the country, but owned by one of its citizens, counts as part of its GNP but not its GDP. To take the United States as an example, the U.S.'s GNP is the value of output produced by American-owned firms, regardless of where the firms are located. Similarly, if a country becomes increasingly in debt, and spends large amounts of income servicing this debt this will be reflected in a decreased GNI but not a decreased GDP. Similarly, if a country sells off its resources to entities outside their country this will also be reflected over time in decreased GNI, but not decreased GDP. This would make the use of GDP more attractive for politicians in countries with increasing national debt and decreasing assets. ]
Expert answered|anithas|Points 22|
Question
Asked 12/26/2012 9:14:52 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
21,536,600 questions answered
Popular Conversations
NAACP
Weegy: The NAACP seems to find racism all around them, but they can't recognize their own! the entire organization is a ...
6/30/2015 9:02:47 AM| 3 Answers
Most stars are at what point in their life cycles? a. ...
Weegy: Most stars are at the stage of A. supergiant. User: The surface temperature of a star can be estimated based ...
7/1/2015 10:25:02 AM| 2 Answers
Factor completely. a2 + 28a + 27
Weegy: a^2 + 28a + 27 = (a+1) (a+27) User: Find the greatest common factor of 8a3b2 and 12ab4. Weegy: 4ab2 is the ...
7/1/2015 10:31:57 AM| 2 Answers
(3k + 4)(3k2 – 5k – 3)
6/30/2015 7:27:10 AM| 2 Answers
a2 + ab – 56b2
6/30/2015 7:29:55 AM| 2 Answers
Weegy Stuff
S
1
L
P
1
Points 48 [Total 1454]| Ratings 1| Comments 38| Invitations 0|Online
S
Points 42 [Total 862]| Ratings 1| Comments 32| Invitations 0|Offline
S
Points 9 [Total 520]| Ratings 0| Comments 9| Invitations 0|Offline
S
1
L
L
Points 6 [Total 8386]| Ratings 0| Comments 6| Invitations 0|Offline
S
L
P
Points 4 [Total 3563]| Ratings 0| Comments 4| Invitations 0|Offline
S
Points 4 [Total 4]| Ratings 0| Comments 4| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
Points 2 [Total 9531]| Ratings 0| Comments 2| Invitations 0|Offline
S
Points 1 [Total 1]| Ratings 0| Comments 1| Invitations 0|Offline
S
Points 1 [Total 44]| Ratings 0| Comments 1| Invitations 0|Offline
Points 0 [Total 0]| Ratings 0| Comments 0| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.