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      Question

      Choose the correct

      statement
      A GNP includes earnings of Indian corporations overseas and Indian residents working overseas; but GDP does not include these Correct Answer Incorrect Answer
      B NNPFC = National Income = FID (factor income earned in domestic territory) – NFIA Correct Answer Incorrect Answer
      C Capital goods and inventory investment are excluded from computation of GDP Correct Answer Incorrect Answer
      D NDPMP = GDPMP + Depreciation Correct Answer Incorrect Answer

      Solution

      GDP counts only domestic production; GNP adds residents’ incomes from abroad. Other options are wrong formulas.

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