Comparing GDP and GNI (Grade 10 NSC Matric Economics): Flashcards
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GDP measures what aspect
GDP measures what aspect
Production within geographical boundaries (location-based)
GNI measures what aspect
GNI measures what aspect
Production by citizens/businesses anywhere (ownership-based)
Production counted by GDP & GNI
Production counted by GDP & GNI
Only activities generating income
When GNI decreases
When GNI decreases
When money flows out (loans, profits abroad)
Why politicians prefer GDP
Why politicians prefer GDP
Better with high debt/foreign ownership
What GDP & GNI don't measure
What GDP & GNI don't measure
Living standards or quality of life
GDP & GNI distribution problem
GDP & GNI distribution problem
Don't show how wealth spreads across population
Economic activity GDP & GNI miss
Economic activity GDP & GNI miss
Household work, volunteer work, underground economy
GDP per capita calculation
GDP per capita calculation
Total GDP ÷ total population
Per capita figures limitation
Per capita figures limitation
Show averages, not actual income distribution