- Distinguish between GDP and GNP/GNI as measures of economic activity.
- Distinguish between the nominal value of GDP and GNP/GNI and the real value of GDP and GNP/GNI.
- Distinguish between total GDP and GNP/GNI and per capita GDP and GNP/GNI.
- Examine the output approach, the income approach and the expenditure approach when measuring national income.
- Evaluate the use of national income statistics, including their use for making comparisons over time, their use for making comparisons between countries and their use for making conclusions about standards of living.
- Explain the meaning and significance of “green GDP”, a measure of GDP that accounts for environmental destruction.
You will continue working in the packet you were already given.
Limitations in GDP measurement and in using GDP to compare countries
Make notes under the following headings: (use p163-165 of textbook plus the handout you have already, p 223-225)
- Hidden economy/non-market activity
- Composition of output
- External costs
- Quality of life concerns
- Disguises income inequality
- Purchasing power considerations