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And finance Allah shmoop What Our net domestic product and

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net national products their ways to measure the performance of

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an economy They represent the value of goods and services

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created by an economy during a set time period Excluding

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the production used to replace older stuff that's you know

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ready to get thrown out So you've heard of GDP

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Gross domestic product right Well net domestic product is GDP

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is lesser known sibling You know I think about a

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family with two kids They both want to make it

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big in Hollywood Think the Baldwins or the Hemsworth or

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the Wall Berg's One kid becomes a huge movie star

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gets tons of attention Lots of press shows up on

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all the red carpets and in the gossip columns you

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ever kid becomes an Indy star stays mostly in the

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shadows but gets some attention from critics and snooty film

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fans who like black and white flicks with subtitles and

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foreign language sounding things and a lot of cigarettes Well

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GDP is the big budget star level Hollywood icons that

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NDP is the cult favorite indie stat Well GDP tracks

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the value of all the final goods and services produced

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in a country during a period of time everything gets

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counted That's GDP However some of that production represents Ivan's

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meant to replace broken down or obsolete products Right let's

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say you run a candy bar manufacturer and your Newgate

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spinner breaks down You buy a new one That replacement

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spinner gets counted in GDP but not in NDP You

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use the machine to make your signature product smooth Newgate

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Sandwich wraps Or since that production gets counted in both

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GDP and NDP it's newly made stuff not products for

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replacement Well in accounting terms this cost for replacement products

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gets tracked as depreciation GDP includes those figures NDP leaves

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them out Okay there's another distinction here to mention another

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sibling Toiling Away is a Broadway understudy in a musical

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version of The Hulk That third sibling is Net National

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product An NPR news net domestic product counts all the

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final products and services produced inside a particular country leaving

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out the A replacement production Of course net national product

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counts the final products and services made by citizens of

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a country no matter where that production takes place in

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DP looks at where it happens and NP looks at

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who makes it happen So the unknown Hemsworth brother gives

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a performance as the musical hulk at a theatre in

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Sydney Australia The Hemsworth are Australian and he's you know

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a performing in Australia that gets counted as both NDP

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and NNP Now Little Hemsworth moves the production Toa London

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It gets counted as an MP but not in DP

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It's produced by an Australian but not in Australia So

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now you see what economists think of a little Hemsworth

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theater career Whether or not performing as a singing hulk

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on London's West End will impress his brothers or not 00:02:46.61 --> [endTime] Well that's a different story

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