Gross National Product (GNP)

Study Notes

Gross National Product (GNP)

GNP measures the total value of all goods and services produced by a country's residents, both domestically and abroad, within a specific time period (usually a year).
It includes the income earned by citizens and businesses, whether they operate within the country's borders or outside of it.

2030 Agenda and Sustainable Development Goals (SDGs)

The 2030 Agenda outlines a shared blueprint for peace and prosperity, focusing on 17 Sustainable Development Goals (SDGs).
The goals include ending poverty, improving health, education, reducing inequality, spurring economic growth, and tackling climate change.

Fiscal Policy

Fiscal policy involves government actions related to taxation and spending to influence the economy.
It helps to stimulate the economy by increasing spending or cutting taxes, or cool it down by reducing spending or raising taxes.
The main tools of fiscal policy are government spending and taxation policies.

Classification of Taxes

Direct Taxes:
- Personal Income Taxes: levied on income earned by individuals, businesses, and other entities.
- Business Income Taxes: imposed on profits earned by corporations or businesses operating within a country.
- Property Taxes: levied on the value of real estate properties owned by individuals or businesses.
- Estate and Gift Taxes: levied on transfers of wealth, including assets transferred at death or while the donor is living.
Indirect Taxes:
- Value-Added Tax (VAT): levied on purchase or consumption of selected products.
- Excise Tax: levied on particular products considered harmful or non-essential.
- Duties: taxes on purchase or consumption of imported goods, often specific to international trade.

Monetary Policy

Monetary policy involves the control of money supply and interest rates by a central bank to achieve economic goals.
It helps to stimulate the economy by increasing the money supply or decreasing interest rates, or slow it down by doing the opposite.
The main tools of monetary policy are adjusting interest rates and buying or selling government securities to influence the money supply.

Functions of Money

Medium of Exchange: money is a convenient and effective medium of exchange, eliminating the inconveniences of barter trade.
Standard of Value: money is a convenient yardstick used to measure the market values of different commodities.
Store of Value: money is a form of wealth because it can be saved and used in the future.

Description

Learn about Gross National Product (GNP) and how it is used as a measure to understand a country's economic activity, encompassing the total value of goods and services produced by its residents domestically and abroad. Explore how GNP contributes to assessing a country's economic performance and productivity.