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NNP: NNP is the Net National Product. It can be either at factor cost or market price.
NNP at FC is the sum total of factor incomes earned by the normal residents of a country during one year. Factor income s the income earned by a factor of production for rendering their services to the production.
NNP at MP is the market value of all the final goods and services produced during one year including NFIA and excluding depreciation.
NNP is not considered as a useful measure to compare a country’s development with other countries because it is a complex process and not easy to calculate. Moreover, every country has its own level of NFIA and depreciation which may be different due to many reasons. For example, India has a high level of remittance received (NFIA) as compared to other countries. So, this becomes an unbiased factor to estimate and measure the economic progress between different countries.
PCI- Per capita income. Per capita income is the average income of the country. It is calculated by dividing the national income of a country by its total population. It is used to compare the income level of different countries. It uses only the economic aspect of a nation and ignores other social aspects such as the education level and the health status of the country. So, PCI can be regarded as a single indicator of the economic development of a country. The World Bank has divided the countries into rich and poor, on the basis of their PCI.
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