1. Gross National Product (G.N.P.): Gross National Product is defined as the total market value of all final goods and services produced in a year. (Or any specified time period e.g. a quarter). We have to keep these things in mind: 1. It is the market value of everything that is produced by Nationals of a country both inside and outside the country’s territory. 2. To ascertain accurate changes in the total output gross national product is adjusted for price changes by comparing it to a base year 3. Everything in the point one means total goods and services. Final means that the value has to be counted only once and not twice. This means intermediate products are not counted. Only the products and services that are used for final consumption have to be counted. For example wheat is converted to flour. Floor is a good for final consumption, and the value of floor covers the value of the wheat as well. Flour may be further converted to biscuits and in this case biscuits cover the value of wheat and its conversion to flour as well. So various forms of most of the goods are purchased and sold several times. This is likely to subject such goods to double accounting – once in its semi-finished form, and again as the final good. In order to avoid this problem, gross national product includes only the market values of the final goods, and ignores the transactions of intermediate goods.