WBCS.LIVE practice question

What is the difference between Gross National Product (GNP) and Gross Domestic Product (GDP)?

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

Answer options

  1. Net Factor Income from Abroad
  2. Depreciation
  3. Net Indirect Taxes
  4. Subsidies

Correct answer and explanation

Correct answer: Net Factor Income from Abroad

Explanation: āœ… Correct Answer: A) Net Factor Income from Abroad šŸ“š Explanation: Gross Domestic Product (GDP) strictly measures the total economic value of all final goods and services produced within the geographic borders of a country. Gross National Product (GNP) measures the total economic value produced by the citizens of a country, regardless of where they are globally located. Therefore, the absolute mathematical difference between them is the Net Factor Income from Abroad (NFIA).