Gross National Product (GNP)

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.