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Discuss the Benefits of Using a "Poverty Weighted" Index of GNP

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Essay

Discuss the benefits of using a "poverty weighted" index of GNP growth as a measure of social welfare as opposed to using the growth in GNP to measure change in social welfare.


Definitions:

Investment Expenses

Fees and other costs incurred in connection with the management and operation of investments.

Net Income

The amount of earnings a company or individual has after subtracting all expenses, taxes, and deductions from total revenue.

Depreciation

An accounting method of allocating the cost of a tangible or physical asset over its useful life, useful for reducing taxable income by recognizing the asset's expense over several years.

Rental Income

Income earned from leasing out property or space to tenants.

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