How is National Income derived? What is the GDP? What information does
it give us about a nation? What is per capita income? If you wanted to
know about the economy of a country, which would you consider more
important, and why? (25 points)
National Income is derived through the overall income earned by a
country’s people, including labor and capital investment.
Gross domestic product is the sum of gross value added by all resident
producers in the economy plus any product taxes and minus any
subsidies not included in the value of the products.
It measures output generated through production by labor and property
which is physically located within the confines of a country.
The following excerpts are definitions of National Income and GNPas
listed on this website
http://members.shaw.ca/h-chartrand/Macro%20+%202.0.htm
“National income is the sum of all factor earnings from production of
current goods and services. Factor earnings are incomes of factors of
production: land (rent), labor (salaries & wages), and capital
(interest and investment income)…”
“Gr...
"World Bank, World Development Indicators-Google Public Data Explorer." Google. World Bank, World Development Indicators, 28 July 2011. Web. 19 Sept. 2011. .
Gathered from the CIA world fact book I created this table to get a simple
The Netherlands has been a trading nation for centuries due to its open economy and outlook. The Dutch are seasoned travellers. They are proficient in languages and skilled in negotiating trade agreements and implementing projects against the odds.
In accordance to statistics in 2008 there was a poverty rate of 13.2 percent, compared to the most recent low poverty rate of 11.3% in 2000. Indeed the comparison demonstrates the increase of the poverty level within an 8 yea...
?Total Midyear Population for the World: 1950-2050? U.S. Census Bureau 26 April 2012. Web 8 April 2014 .
Landes, D., 1999. The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor. New York: W. W. Norton & Company, 38-59
The first figure that sticks out the most is the large difference in their GDP per capita. GDP per capita is the is a measure of average income per person in a
One of the roles of the state is redistributing income and making that difference between the rich and the poor in the country less apparently. There are two types of measurements that economists use
Whether total or per capita, GDP figures are a very useful indicator of a countries SoL but only look at a single material dimension, that of income, output, or expenditure. They are not an explicit or accurate measure and do not incorporate the non-material and non-quantifiable dimension to SoL.
actual socioeconomic status in the economy of the united states because that is the one
“Gross National Income (Constant LCU) in Cameroon.” Trading Economics. Trading Economics, n.d. Web. 14 Apr. 2014.
The annual surveys economic freedom of the world (EFW) and Index of economic freedom (IEF) are two indices which measure the degree of economic freedom in the world 's nations. The EFW index, initially developed by Gwartney, Lawson and Block was likely the most used in empirical studies as of 2000. The other most extensively used index which was created by the heritage foundation and the wall street journal seemed to be better for data analysis but was not as useful when it came to historical comparisons. According to the individuals that created the use of economic indices, the rankings have a mutual relationship with the greater average income per person, higher income of the poorest ten percent, higher life expectancy, higher literacy rates, lower infant mortality rates, higher access to good and clean water sources and less corruption. The people living in the top one-fifth of countries enjoy an average income of $23,450 and a growth rate in the 1990s of 2.56 percent per year; in contrast, the bottom one-fifth in the rankings had an average income of just $2,556 and a -0.85 percent growth rate in the 1990s. The poorest ten percent of the population have an average income of just $728 in the lowest ranked countries compared with over $7,000 in the highest ranked countries. The life expectancy of people living in the highest ranked nations is 20 years longer than for people in the lowest ranked countries. Higher economic freedom, as measured by both the Heritage and the Lawson and Block 's method of measuring the indices, correlates strongly with higher self-reported happiness. Erik Gartzke of the Fraser institute( institute that Lawson and Block are associated to) estimates that countries with a high EFW are significantly less likely to be involved in wars, while his measure of democracy had little or no impact.
in many avenues such as the laws our government makes the media. continual focus on the latest medical research and learning. from past experiences and mistakes to improve our lives. GDP: Gross Domestic Product - The value of goods and services produced. within a country, per person, excluding trade with other countries.
There has been an influx of data on poverty ever since the implementation of the Millennium Development Goals in 1990. The debate, however, still exists on the effectiveness of the analysis of this data as well as actual ways in which poverty is actually measured. Skeptics have criticized everything from the types of polls and surveys used to collect the data, to the legitimacy of the reports from the countries producing them. Overall, there is much debate about how many people actually fall into the category of poverty, and
National income is a measure of the value of the output of the good and