WBCS.LIVE practice question

Gross National Product (GNP) is calculated by adding 'Net Factor Income from Abroad' to which of the following?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. GDP
  2. NNP
  3. Personal Income
  4. Disposable Income

Correct answer and explanation

Correct answer: GDP

Explanation: āœ… Correct Answer: A) GDP šŸ“š Explanation: GNP measures the total value of all finished goods and services produced by a country's citizens, regardless of their location. It is calculated by taking the Gross Domestic Product (GDP) and adding the income earned by residents from overseas investments, then subtracting income earned within the domestic economy by foreign residents. This provides a broader picture of a nation's economic output based on nationality.