Question

The monetary value of all the finished goods and services produced during the year 2019 inside and outside Oman are given below: S.No Particulars Amount (OMR) 1 The value of goods and services produced by Omani inside Oman 10,000 2 The value of goods and services produced by American inside Oman 4,000 3 The value of goods and services produced by Indian inside Oman 2,000 4 The value of goods and services produced by Indian outside Oman 12,000 5 The value of goods and services produced by Qatari inside Qatar 2,000 6 The value of goods and services produced by Omani outside Oman 2,000 7 Depreciation 400 Required: A) Calculate the following i. Gross Domestic Product (GDP), ii. Gross National Product (GNP), iii. Net Domestic Product (NDP) and iv. Net Domestic Product (NNP). B) Justify in detail the reasons for the difference between GDP and GNP.

Answer 1

GDP - Gross Domestic Product - Value of goods and services produced in the geographic region in a given period of time.

GNP - Gross National Product - Value of goods and services produced by the people of that nationality irrespective of their location.

NDP - Net Domestic Product = GDP - Depreciation

NNP - Net National Product = GNP - Depreciation

1. GDP for Oman = 10000(Omanies in Oman) + 4000(Americans in Oman) + 2000(Indians in Oman) = 16000

2. GNP for Oman = 10000(Omanies in Oman) + 2000(Omanies outside Oman) = 12000

3. NDP for Oman = 16000(GDP) - 400 (Depreciation) = 15600

4. NNP for Oman = 12000(GNP) - 400 (Depreciation) = 11600