Table of Contents
What is the best measure of economic performance?
The most comprehensive measure of overall economic performance is gross domestic product or GDP, which measures the “output” or total market value of goods and services produced in the domestic economy during a particular time period.
Which is the best measure of economic growth of a country GDP or GNP?
The correct answer is GDP. GDP is used to understand the economic condition of the country.
Is GDP or GNP a better measure of economic welfare?
While gross domestic product (GDP) is among the most popular of economic indicators, gross national income (GNI), is quite possibly a better metric for the overall economic condition of a country whose economy includes substantial foreign investments.
Which of the following is the best measure of economic growth?
Economic growth is the increase in the value of an economy’s goods and services over time. Real gross domestic product is the best way to measure economic growth, because it removes the effects of inflation.
What is the best measure of economic development explain in brief?
The increase in per capita income is a good measure of economic development. In the advanced countries, per capita income has been on continuous increases because the growth rate of national income is greater than the growth rate of population.
Is GDP good measure of welfare?
GDP has always been a measure of output, not of welfare. Using current prices, it measures the value of goods and services produced for final consumption, private and public, present and future. But although GDP is not a measure of human welfare, it can be considered a component of welfare.
What is the difference between GDP and GNP Quizlet?
Answer Wiki. GDP (Gross Domestic Product) measures the production of final goods and services within a nation’s territory; GNP (Gross National Product) measures the production of final goods and services by a nation’s residents and the factors they own.
Why is GDP the best measure of economic development?
Gross Domestic Product (GDP) is the best estimate of the total economic output produced within a country’s borders. GDP is most useful as a measure of development because there are great difficulties estimating the output of the foreign assets held by all of a nation’s citizens.
What is GNP in economics?
Gross national product (GNP): It is the market value of all the products and services produced in one year by labor and property supplied by the citizens of a country. Unlike gross domestic product (GDP), which defines production based on the geographical location of production, GNP indicates allocated production based on the location of ownership.
What is GDP according to expenditure method?
According to expenditure method, GDP is the sum of consumption (C), investment (I) and government spending (G). 2. Gross national product (GNP): It is the market value of all the products and services produced in one year by labor and property supplied by the citizens of a country.