Explain the difference between: final and intermediate goods, GDP and GNP, GDP and NDP, and, between...

Explain the difference between: final and intermediate goods, GDP and GNP, GDP and NDP, and, between In and Ig (net private domestic investment and gross private domestic investment)

Expert Solution

Answer :

Difference between Final & intermediate goods:

Final goods are those goods which are used for ultimate consumption where as intermediate goods are used for further production process.

Difference between GDP & GNP:

Difference between GDP & GNP of a country is shwon in the following way of calculation.

GDP = Personal consumption expenditure + Government expenditure + Investment + Net export ( Total export - Total import)

GNP = Personal consumption expenditure + Government expenditure + Investment + Net export ( Total export - Total import) + Net factor income from abroad ( Total receipts - Total payments)

Difference between GDP & NDP:

Difference between GDP & NDP of a country is shwon in the following way of calculation.

GDP = Personal consumption expenditure + Government expenditure + Investment + Net export ( Total export - Total import)

NDP = GDP - Depreciation

Difference between Gross private domestic investment & net private domestic investment :

Gross domestic private investment = Replacment purchases + net addition to capital assets + investment in inventories

When depreciation charge is deducted from gross private domestic invement then it is called Net private domestic investment

Rahul Sunny answered 2 years ago

What is the difference between GNP and GDP? Why goods and services are counted at market...

What is the difference between GNP and GDP? Why goods and services are counted at market price? Discuss. Also define three approaches of measuring national income? Why they give identical results?

What is the main conceptual difference between GDP and GNP? How different are GDP and GNP...

What is the main conceptual difference between GDP and GNP? How different are GDP and GNP for the United States? For countries with many citizens who work abroad?

1a. Explain why are intermediate goods excluded from the GDP calculation. 1b. Explain the difference between...

1a. Explain why are intermediate goods excluded from the GDP calculation. 1b. Explain the difference between Nominal GDP and Real GDP. 1c. Explain why do we add exports and why do we subtract imports when calculating the GDP. 2. Calculate the multiplier based in each of the situations below and comment on your answers as you move from point a to point f (what happens to the multiplier?). MPS = 0.15 MPS = 0.20 MPS = 0.30 MPS = 0.40...

Are GDP and GNP really relevant as economic indicators? Why? What is the difference between GDP...

Are GDP and GNP really relevant as economic indicators? Why? What is the difference between GDP and GNP? Please explain whether the difference is important for the Turkish economy.

Explain difference between GDP and GNP. Support your answer with simple examples from Oman economy.

What are final goods and intermediate goods? How do they help in calculating (GDP) Gross Domestic Product?

Gross Domestic Product (GDP) Is the sum of all goods, both final and intermediate Equals the...

Gross Domestic Product (GDP) Is the sum of all goods, both final and intermediate Equals the total value of final goods and services produced in a year. Equals the total wages paid in a year. Is an obsolete economic indicator of inflation Is a measure of government output Gross Domestic Product (GDP) expressed in constant (real) dollars is called Real GDP. A price index. Permanent income. Capital accumulation. Gross National Product (GNP). The process of converting values expressed in current...

Gross Domestic Product (GDP) Definition Calculation – Expenditure and income approaches Final goods versus intermediate goods...

Gross Domestic Product (GDP) Definition Calculation – Expenditure and income approaches Final goods versus intermediate goods Are used goods counted in GDP? Are stocks and bonds (financial assets) counted in GDP? How are inventories treated in GDP? Calculation of real GDP & current GDP Definition of the standard of living Limitations of GDP per person as a measure of the standard of living – e.g., is household production included in GDP? What about underground economic activity? What about leisure and...

A. What is the difference between the GDP and GNP? B. How does aggregate demand versus...

A. What is the difference between the GDP and GNP? B. How does aggregate demand versus aggregate supply influence GDP according to Keynesian economics? C. How would each of the following change the reported GDP? Explain. An increase in illegal counterfeit sales. More families eat out instead of eating at home. More Americas purchase cars made in Germany. D. How would each of the following change the GNP? Explain. Volkswagen (German company) opens a new plant in SC. I buy a Ford car built...

2. Identify the difference between GDP, GNP and aggregate output? Make 3 recommendations to revive the...

2. Identify the difference between GDP, GNP and aggregate output? Make 3 recommendations to revive the Canadian economy post Covid -19 pandemic. Justify your recommendation? 3. Perform Porter’s Five Forces Analysis for one of the industries given below. Justify your answers. Industry: Starbucks – coffee beverage industry, Samsung smartphone – smartphone industry, Automobile industry, Cable TV industry, Dental office, Clothing store

Question