Question 1
EasyOriginal questionGNP = GDP +
Show the answer and explanation
CorrectNot quiteAnswer B
Correct answer: B
Explanation
GDP counts what is produced within the country; GNP counts what its residents earn, wherever they produce.
The bridge is NFIA: residents' factor income from abroad minus non-residents' factor income earned here.
Worth noting
Net exports are about goods and services traded; NFIA is about factor incomes such as wages, rent, interest and profit.
- Concept
- GDP and GNP
- Typical timeTypical
- 40 s
- Your timeYours
- —
Practise this chapter →
Ten questions from National Income Aggregates & GDP, at your own pace.