Video Notes: Economic Indicators – GNP, GDP, GNI, Per Capita Income, and Sectoral Shares

Vocabulary flashcards covering GNP, GDP, GNI, per capita income, measurement methods, sector definitions, and related concepts from the lecture notes.

Gross National Product (GNP)

The total monetary value of all final goods and services produced by the residents of a country in a given period (usually one year), regardless of where the production occurs; often measured as GDP plus net factor income from abroad.

Gross Domestic Product (GDP)

The total monetary value of all final goods and services produced within a country’s geographical boundaries in a given period, regardless of the producers’ nationality.

Gross National Income (GNI)

The total income earned by a country’s residents and businesses, including income from abroad; often used interchangeably with GNP in simple economies.

Per Capita Income

Average income per person, calculated as Gross National Income divided by total population.

Final Goods and Services

End products consumed by the ultimate users; only these are counted in GNP/GDP to avoid double counting of intermediate goods.

Production Method of GNP

Measuring GNP by summing the market value of final goods and services produced, counting only the ultimate commodity and excluding intermediate stages.

Income Method of GNP

Measuring GNP by summing the incomes earned by the factors of production: rent (land), wages (labour), interest (capital), and profit (organization).

Expenditure Method of GNP

Measuring GNP by totaling expenditures: consumption, investment, government spending, and net exports.

Factors of Production Incomes

Income earned by the four factors of production: land (rent), labour (wages), capital (interest), and organization (profit).

Net Factor Income from Abroad (X–M)

Difference between income earned by residents abroad (X) and income earned by foreigners domestically (M); affects GNP/GNI.

Three Sectors of the Economy

The primary divisions of the economy: agriculture, industry, and service.

Agriculture Sector

Covers agriculture and forest resources; crops, fruits, vegetables, forestry, and related outputs (including some fish resources).

Industry Sector

Covers mining, excavation, minerals, construction, and manufacturing; includes electricity, gas, and water resources.

Service Sector

Covers education, health, banking, insurance, hospitality, transport, communication, and other service activities.

GDP vs GNP vs GNI Differences

GDP counts production within a country’s borders; GNP/GNI counts production by the country’s residents (including abroad); GNP may be higher or lower than GDP depending on net income from abroad.

Real vs Nominal Standard of Living

Real standard of living depends on prices; if income rises but prices rise equally, real living standard is unchanged; if prices stay constant or rise more slowly, real living standard improves.

Depreciation (Capital Consumption)

A portion of GNP set aside to replace worn-out capital goods; this depreciation is not included in the income of factors of production.

Bangladesh Per Capita Income (2022-23)

According to the Bangladesh Bureau of Statistics, per capita annual income was 2749 USD for fiscal year 2022-2023.

What are the three main sectors of the economy, according to general economic classification?

1. Agriculture
2. Industry
3. Service

What does the Agriculture Sector in Bangladesh encompass, in a broader sense?

Agriculture and forest resources, plus fisheries.

What does the Industry Sector in Bangladesh typically include?

Mineral and excavation, electricity, gas, water resources, and construction, alongside small, medium, and large industries.

What activities are covered under the Service Sector in Bangladesh?

Transport, communication, hotels & restaurants, financial organizations, postal-telephone, education, health, and other service activities.

How is the economy of Bangladesh officially divided, despite being generally grouped into three main sectors?

Officially divided into 19 sectors, but grouped into 5 wider ones:

1. Agriculture
2. Industry
3. Service
4. Business
5. Social service

Which two sectors were the biggest contributors to Bangladesh's GDP in 2022–23?

Industry (24.89\%) and Wholesale & Retail Trade (15.26\%).

What was the share of the Agriculture & Forest sector in Bangladesh's GDP in 2022–23?

11.30\%.

What was the share of the Industry sector in Bangladesh's GDP in 2022–23 (specifically for "Industry", not including subcategories)?

24.89\%.

According to the World Bank (2023), how are High-Income Countries defined by Per Capita GNI?

Per Capita GNI of 13,845+.

What are the key features of High-Income Countries?

They are developed, have surplus income, and possess advanced social and economic infrastructure.

What is the Per Capita GNI range for Middle-Income Countries according to the World Bank (2023)?

Between 1,136 and 13,845.

What are the two types of Middle-Income Countries, and what are their respective Per Capita GNI ranges and examples (World Bank, 2023)?

1. Upper Middle-Income: 4,466 - 13,845. Examples: China, Iran, Malaysia, Turkey, Thailand.
2. Lower Middle-Income: 1,136 - 4,465. Examples: India, Bangladesh (2,860), Egypt, Nigeria, Pakistan, Kenya.

How is Bangladesh classified by income group as of World Bank (2023), and what was its Per Capita GNI?

Bangladesh is classified as a Lower Middle-Income Country with a Per Capita GNI of 2,860.

What is the definition and Per Capita GNI threshold for Low-Income Countries according to the World Bank (2023)?

Countries with a Per Capita GNI of 1,135 or below.

What are the key features of Low-Income Countries, and name an example?

They are least developed, have very low income, and struggle with social infrastructure. Examples include Niger and Uganda.