Differences in Economic Development Gross National Product(GNP) Common yardstick for measuring economic activit I Measures total value of goods and services produced annually Both give Doesn't consider the differences in costs a static of living picture of development Purchasing power parity I Uses U.S. cost of living for basis of adjustment among countries McGraw-HillIrwoin @2003 The McGraw-Hill Companies, Inc, All Rights Reserved.McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. 2-2 Differences in Economic Development Gross National Product (GNP) Common yardstick for measuring economic activity. Measures total value of goods and services produced annually. Doesn’t consider the differences in costs of living. Purchasing Power Parity. Uses U.S. cost of living for basis of adjustment among countries. Both give a static picture of development