Question

Consider the following statements about the measurement of national income: I. Gross Domestic Product (GD

  • A is negative — meaning more income flows out (to foreign-owned factors) than flows in — GNP will be lower than GDP. For example, a country with many MNCs repatriating profits will have GNP < GDP. III. Gross Value Added (GV
  • A at basic prices + Net Taxes on Products = GDP at market prices. Which of the above are correct?
  • P measures the total market value of all final goods and services produced within a country's geographic boundaries in a given year, regardless of the nationality of producers. II. If Net Factor Income from Abroad (NFI
A I and II only
B Only I
C I, II and III
D II and III only
E Only III
Practice Next

Hey! Ask a query