Classification Essay a Teacher

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Abundo, Marie Rose R.Eco 2a/ B2F/5338
2nd/BSBA-FMProf. Micheal Noel

1.) What is GNP?
GNP (Gross National Product) is the market value of all final goods and services produced during a given period by factor of production owned by a country’s citizen, regardless of where the output is produced. For most countries, the difference between GDP and GNP is small. (Case & Fair, 2007) The market value of all final goods and services produced during a given period measures both the value of output produced and the income that generates. The World Bank begins classifying countries by measuring the gross national product. (McEachern, 2009) GNP measures both the value of output produced and the income that output generates. 2.) What is GDP?

GDP (Gross Domestic Product) is the total market value of a country’s output. It is the measure of the total production of an economy where it provides us with a country’s economic report card. (Case & Fair, 2007) Total market value of a country’s output is the market value of all final goods and services produced within a given period of time by factors of production located within a country. Final goods and services is produced for final used while intermediate goods are produced by one firm for use in further processing by another firm. Intermediate goods are not counted in GNP. (Case & Fair, 2007) GDP is the market value of all final goods and services produced within a given period of time by factors of production located within a country.

3.) What is National Income Accounting?

National Income Accounting measures the economy’s overall performance. It does for the economy as a whole what private accounting does for the individual firm or for the individual household. (McConnell & Brue, 2005) As it measures the economy’s overall performance, it organizes huge quantities of data collected from a variety of sources across the country. These data were summarized, assembled into a...
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