Question

what is Gross National product AND Net National Income At Market price And Factor Cost???

Answer 1

heya!

GNP :- GNP is a broad measure of a nation's total economic activity. gnp is the value of all finished goods n services produced in a country in one year by nationals. it is produced in one year by labor n property supplied by the citizen of a country.

product evaluation on the bases of market price :- when we evaluate product evaluation on the bases of market price. it includes depreciation, indirect taxes n subsidies.

product evaluation on the bases of factor cost :- it includes depreciation but not include net indirect taxes.
net indirect taxes =indirect tax - subsidy

# GNP at market price = GDP at market price - net foreign income.
*net foreign income = GNP MP - GDPmp

#GNP at factor cost =GNP at market price - net indirect taxes.

NNP at factor cost n market price :- see the above picture as shown ^|^

hope this help! thanku ^_^

Answer 2

GNP at market price is defined as “the market value of all the final goods and services produced in the domestic territory of a country by normal residents during an accounting year including net factor income from abroad.

Being gross it includes depreciation; being at MP it includes net indirect taxes and being national it includes net factor income from abroad. Note that GNP is the core concept of national income accounting. Distinction can be made between ODPMP and GNPMP. Simply put, GNPMP is GDPMP plus net factor income from abroad. Put in symbols:


GNPMP = GDPMP + Net factor income from abroad

Remember, GDP is a territorial concept because it includes whatever is produced within the domestic territory of a country irrespective of whether the producer is a resident or a non-­resident (i.e., foreigner). But GNP is an economic concept because it includes productive efforts of only residents of a country within and outside the country GDP is based on domestic territory but GNP is based on normal residents.

The basis of difference between GNPMP and GDPMP is Net Factor Income from Abroad. ‘Net factor income from abroad’ is the difference between the factor income earned from abroad by the normal residents of a country and the factor income earned by non-residents in that country. GNPMP includes all the constituents of GDPMP plus net factor income from abroad.