WBCS.LIVE practice question

Which of these expressions is correct?

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

Answer options

  1. If the factor income from abroad is greater than the factor income paid abroad, then GNP would be greater than GDP.
  2. If the factor income from abroad is greater than the factor income paid abroad, then GNP would be lower than GDP.
  3. If the factor income earned from abroad is less than the factor income paid abroad, then GNP would be greater than GDP.
  4. If the net factor income from abroad is negative, then GNP would be greater than GDP.

Correct answer and explanation

Correct answer: If the factor income from abroad is greater than the factor income paid abroad, then GNP would be greater than GDP.