Question
Which of the following statement is/are incorrect about
“Gross Domestic Product”? I.        Gross Domestic Product (GDP) is that income or product which accrues to the economic agents who are residents of the country. II.        The income earned by the Non-Resident Indians (NRIs) will be a part of India's Gross National Product (GNP).Solution
Explanation: Gross Domestic Product (GDP) measures the aggregate/total production of final goods and services taking place within the domestic territory of the country during a year. But it may be possible that the foreign nationals working within India have contributed in that GDP production. GNP is that income or product which accrues to the economic agents who are residents of the country. Thus, GNP is the value of all finished goods and services owned by a country's residents, whether or not those goods are produced in that country.
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