(i) Gross Domestic Product (GDP)
The GDP of a country is the total monetary value of all goods and services produced within the country by her residents. The residents include both its citizens and foreigners living within it. It does not include the goods and services of its citizens living abroad. This is usually calculated at factor cost.
(ii) The Gross National Product(GNP)
The GNP is the monetary value of all goods and services produced by the citizens of a country living both within and abroad in a period of one year. The GNP includes all, the earnings of a country’s citizens and their services, and earnings of investments of foreigners living within the country. The GNP at factor cost is simply referred to as GNP. The GNP at factor cost plus the net indirect taxes gives the GNP at market price. GNP (fc) – Net factor income from abroad = GDP (f.c).
(iii) National Income (NI)
The NI is defined as the monetary value of all goods and services produced in a country within a specified period of time, usually a year. lt is the summation or addition of all the income earned by the four factors of production when employed in economic activities, less their taxes (both direct and indirect) plus subsidies.
(iv) Net National Product (NNP)
The NNP is the GNP minus depreciation of the fixed assets of a country. Simply stated, it is the total monetary value of all goods and services produced by every citizen of a country including the income earned from their investments, both within and outside the country. This is the income earned after the depreciation on fixed assets has been deducted. NNP = GNP – Depreciation
(v) Personal Income
This is the money either paid to or earned by an individual or the property. in the course of taking part in economic activities. It includes rent paid to landlords, interest paid to capital owners, wages paid to labour and profit earned by
(vi) Disposable Income
This is defined as that income given to the individual after his personal income tax has been deducted from it. It is the personal income less the personal income tax.
Per Capita Income
Per capita income or income per capita of a country is the total income of the country divided by the total population. It is the Gross National Product divided by the total population of the country.