What are the components of Gross National Product (GNP)? How does it understate aggregate production in Third World countries where substantial economic production may be consumed directly and thus not reach markets where it can be measured? Finally, is per capita income (PCI) a good measure of level of living people enjoy or are the data skewed, given substantial differences in the distribution of income especially in Third World countries?

Question

Quizplus · Accepted Answer

The Answer of What are the components of Gross National Product (GNP)? How does it understate aggregate production in Third World countries where substantial economic production may be consumed directly and thus not reach markets where it can be measured? Finally, is per capita income (PCI) a good measure of level of living people enjoy or are the data skewed, given substantial differences in the distribution of income especially in Third World countries?

What Are the Components of Gross National Product (GNP)? How