- Definition
Gross national product is like a country's total income, which includes what it earns from making things at home and from its businesses operating in other countries.
Income a Canadian resident earns from an investment abroad can be included when calculating Canada's GNP, while income paid to a non-resident is subtracted.
How to teach this in 30 seconds
Try this analogy: Gross national product measures economic activity linked to a country's residents, including some income they earn abroad and excluding some income earned domestically by non-residents.
Ask your child: How is income earned abroad by a country's residents different from production that happens inside its borders?
Common mix-up: GNP and GDP are related but different. GDP measures production within a country's borders; GNP adjusts that total using income residents receive from abroad and income paid to non-residents.
Example
- GDP focuses on where production occurs, while GNP focuses on income associated with residents.
gross national product is a term used in Ontario’s Kindergarten to Grade 8 curriculum.
Where this shows up
The descriptions on this page are SmartStudy’s own original, plain-language writing — not the Ministry’s wording. They are aligned to the Ontario Curriculum, © King’s Printer for Ontario. For the Ministry’s official wording, see the source link below. SmartStudy is an independent service and is not affiliated with, endorsed by, or sponsored by the Government of Ontario or the Ministry of Education. Ontario Curriculum and Resources ↗
