Which among the following is the most appropriate definition of “Gross National Product”?
Question and options
Which among the following is the most appropriate definition of “Gross National Product”?
- The depreciation in the total value of goods and services produced in the country.
- The total value of goods and services produced in the country.
- The total value of all the transactions in the country.
- The total value of goods and services produced in the country plus the net factor income from abroad.
Answer and explanation
Correct answer: D - The total value of goods and services produced in the country plus the net factor income from abroad.
GNP = GDP (value of goods and services produced within the country) + net factor income from abroad. The definition without net factor income from abroad describes GDP, not GNP.
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