GNP and living on ten cents a day

This post is in response to an assignment by my professor.
What are the components of Gross National Product (GNP)? How does it understate aggregate production in Third World countries where substantial economic production may be consumed directly and thus not reach markets where it can be measured? Finally, is per capita income (PCI) a good measure of the level of living people enjoy or are the data skewed, given substantial differences in the distribution of income especially in Third World countries? Construct a one-two paragraph posting in which you respond thoroughly, supporting your answer with references.

Gross National Product and living on 10 cents per day.

The GNP is comprised of the value of all the goods and services produced in a given year. Valentino Piana describes three components of the GNP, demand, income and production.. (Piana, 2001) No matter the sellable products in a country, there is a certain minimum level of demand. There is a calorie minimum to ensure continuity of a country. Gardens and bartering are two things that are not calculated in the GNP of third world countries.
When Per Capita Income of Turkey is $6,700 (http://globalis.gvu.unu.edu/indicator_detail.cfm?IndicatorID=140&Country=TR) it seems that people would be dying from malnutrition. Standard of living is dependent on a few things that aren’t in the formula.. Purchasing power is much higher in smaller countries. In 2005 only 1/3 of the average family’s income was spent on food and clothing. The rest of the need for food and clothing is taken care of in immeasurable things, trade and home production (gardens and sewing).
PCI is a good measure of success families in developed countries. In comparing two developed countries, GNP is a good indicator. But, in third world countries, and even in some pockets within a developed country, these measures would only show no real comparison.

Thank you,
Janet Johnson

Piana, Valentino, (2001), Gross Domestic Product, from the Economics Web Institute at http://www.economics/sebinstitute.org/glossary/