Multiple choice

When we talk of Gross National Product (GNP), we talk of the following: (a) It measures money value of all the goods and services produced by the nationals of a country in a year. (b) It includes the money value of goods and services produced by nationals outside the country. (c) It also includes the income received by foreign nationals within the boundary of the country.

Which of the above is/are correct?

  1. Only (a)

  2. Only (b)

  3. Both (a) and (b)

  4. Both (b) and (c)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Statement (3) is incorrect. Income received by foreign nationals within the boundary of countries is excluded from GNP while arriving at GDP.

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