Question

State the difference between the following:

Gross National Disposable Income (GNDI) and Gross National Product at market price (GNP_mp).

Answer 1

Characteristic	Gross National Disposable Income (GNDI)	Gross National Product at market price (GNPmp)
Definition	The total income available to the nation for spending or saving. It starts with GNPmp and adds net current transfers received from the rest of the world (e.g., remittances, foreign aid). Because it is “gross” it includes depreciation.	Total market value of final goods and services produced by a country’s residents (at home and abroad) during a period. It equals GDP at market prices plus net factor income from abroad.
Formula	GNDI = GNPmp + net current transfers (received from rest of world).	GNPmp = GDPmp + (factor income received from abroad − factor income paid to non‑residents).
Typical use	To show the total resources available to the whole economy for consumption and saving (disposable income of the nation).	To measure aggregate production/output by the country’s residents and compare economic performance over time.