Question

GNP equals GDP7)A)plus net receipts of factor income from the rest of the world.B)minus receipts of factor income from the rest of the world.C)minus depreciation.D)minus net receipts of factor income from the rest of the world.E)plus receipts of factor income from the rest of the world.

Answer 1

Answer:

The answer is A. Plus net receipts of factor income from the rest of the world

Explanation:

Gross National Product (GNP) measures the total output produced by a citizen of a country regardless of whether the production occurs domestically or overseas in a given period of time. while Gross Domestic Product(GDP) is the market value of all final goods and services produced within the economy in a given period of time.

For example, a citizen of United States that produced outside the country will not count for GDP but will count in the GNP.

It is only goods produced within a country that counts for GDP excluding the ones produced outside the country.

But for GNP, it includes GDP and the one outside produced by its citizens