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.

Practice Next
×
×