- Gross and Net National Product – changes in social surplus provide a conceptually attractive metric for evaluating policies in terms of efficiency. However it is often impractical due to the widespread policies affecting the economy.
- Gross National Product (GNP) – the market value of the output of final goods and services produced by a nation’s economy. Drawbacks as a tool –it measures the market value of goods and services in current prices so that increases in the general price levels inflate GNP estimates even in the absence of increase of output. Second, it does not account for the depreciations of plants, equipment, and residential structures that offsets the addition to productive capacity resulting from new investment.
o Adjusting the GNP for depreciation leads to Net National Product (NNP)
o Only act as a rough estimate for changes in social welfare