Economics • Economic BasicsEasy
What does 'Gross National Product (GNP)' measure that distinguishes it from 'Gross Domestic Product (GDP)'?
A. Total economic output produced within the domestic territory by both residents and non-residents
B. Total income earned by the citizens and legal entities of a country, regardless of geographical location✓ Correct Answer
C. Net output remaining after subtracting depreciation allowances from total macroeconomic investments
D. Total value of consumer goods adjusted for indirect taxes and government subsidies
💡 Solution & Explanation
Gross National Product measures the total economic value generated by the permanent residents and nationals of a country, including net factor incomes earned abroad, regardless of where production takes place. Gross Domestic Product measures output produced strictly within the geographical borders of a country. Depreciation adjustments transform gross aggregates into net domestic or national product figures. National income aggregates serve as standard benchmarks evaluated by the Ministry of Statistics and Programme Implementation.
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