Question

    Which of the following is correct?

    A GNP = GDP + Net factor income from abroad Correct Answer Incorrect Answer
    B GNP = GDP – Net factor income from abroad Correct Answer Incorrect Answer
    C GNP = GDP + Depreciation Correct Answer Incorrect Answer
    D GNP = GDP – Depreciation Correct Answer Incorrect Answer

    Solution

    Gross national product is an economic statistic that includes GDP, plus any income earned by a resident from overseas investments, minus income earned within the domestic economy by foreign residents. Gross domestic product is the value of a nation's finished domestic goods and services during a specific time period. GNP = GDP + Net factor income from abroad. GNP is NOT always greater than GDP.

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