Deriving Gross National Income (Grade 10 NSC Matric Economics): Flashcards
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Define Gross National Income (GNI)
Define Gross National Income (GNI)
Total value of production by a country's citizens & businesses
GNI tracks economic activity based on what?
GNI tracks economic activity based on what?
Ownership rather than location
How to describe what GNI measures?
How to describe what GNI measures?
What our people earn, regardless of where they work
What income is added to GNI calculations?
What income is added to GNI calculations?
Investment returns & profits from activities abroad
What is subtracted from GNI calculations?
What is subtracted from GNI calculations?
Money/profits flowing out to foreign investors/businesses
SA company profits in Botswana: count towards SA's GNI?
SA company profits in Botswana: count towards SA's GNI?
Yes, ownership matters not location
German company profits in SA: count towards SA's GNI?
German company profits in SA: count towards SA's GNI?
No, subtracted from SA's GNI
What does GNI help measure?
What does GNI help measure?
True earning capacity of a country's economic actors
Key limitation of GNI?
Key limitation of GNI?
Doesn't show how income is distributed across population
How should GNI be used effectively?
How should GNI be used effectively?
Combined with income distribution & social welfare measures