In economics the difference in gross domestic product and gross national product is what?

Answer 1

capital consumption allowance, or the cost of repairing and fixing capital machinery...also called depreciation

Answer 2

Sounds like a great theory, but it has never worked in the past. Why do so many people fail to look at history when looking for a solution? The national debt has not decreased since 1940. It doesn't matter how the money is spent, the government is effectively shackling future generations. How large does the debt have to get before it is too large to overcome? I say it has already gotten that large. Nearly 25% of current tax revenue is used just for interest payments. Advocating even greater interest payments is extremely irresponsible, should be criminal. Mine is not a recent worry, have been very concerned about the path our government is leading us for several decades. It is just not sustainable to keep on spending more without the revenue, and yet it keeps worse every year instead of reigning it in. The Federal Funds rate will be kept at 0% for the next two years. What effect will this have on prices of goods and how will that help us get out of an economic slump, even if the stimulus package creates a few road construction jobs? Our purchasing power is decreasing at an alarming rate.

Answer 3

Gross Domestic Product(GDP) is the average income of the average person. Gross National Product(GNP) is the total of all transactions within a country in the year.

Answer 4

GDP reflects all domestic factors of production, and includes the value of consumer purchases, investment, government purchases, and net exports. GNP reflects all factors of production, whether they are domestic or foreign, which contribute to output. In essence, the GNP reflects some values that are not necessarily derived domestically (such as income from US workers working abroad), while GDP reflects all output within the US border. GDP is now more frequently used to measure output.

Answer 5

I think national means the country as a whole. Domestic means each person individually. Gosh- good question. I knew it in college. Maybe I should go back to that class! :)

Answer 6

GDP is what's used now and it refers to the total value of goods and services produced within a politial boundary.

GNP is what was used before 1920's and it refers to total value of goods and services produced by the citizens of the economy unit.

(This is what I got from amosweb.com.)

Answer 7

GDP + overseas income = GNP