Economics Real Vs Nominal Gdp Questions
The difference between GDP and GNP growth rate per capita lies in the measurement of economic activity and the inclusion of income earned by residents of a country. GDP (Gross Domestic Product) measures the total value of goods and services produced within a country's borders, regardless of the nationality of the producers. On the other hand, GNP (Gross National Product) measures the total value of goods and services produced by a country's residents, regardless of where they are located.
The growth rate per capita refers to the rate at which the GDP or GNP per person is increasing over a specific period of time. It provides an indication of the average economic well-being of individuals within a country.
Therefore, the difference between GDP and GNP growth rate per capita is that GDP growth rate per capita measures the average economic well-being of individuals within a country based on the value of goods and services produced within its borders, while GNP growth rate per capita measures the average economic well-being of individuals within a country based on the value of goods and services produced by its residents, regardless of their location.