What does Gross National Income (GNI) represent?

Gross National Income (GNI) represents the total income earned by a nation's residents and businesses, regardless of where that income is generated. This includes wages, dividends, rents, and profits earned by residents and businesses, whether domestically or abroad. GNI provides a broader measurement of economic performance than Gross Domestic Product (GDP), as it accounts for income that residents earn from investments or work outside their home country, while also deducting income earned within the country by foreign residents and businesses.

GNI is particularly useful in understanding the economic well-being of residents, as it reflects the overall purchasing power of the population based on their combined earnings. This aspect of GNI helps policymakers and economists assess the financial health of a nation and formulate strategies for economic development.

In contrast, the other options focus on different aspects of the economy: the total value of services offered pertains to a sectoral aspect of GDP; total imports and exports refer to trade balances rather than income; and total investments made within a country relate to capital formation rather than an assessment of income generation across national borders.