Question : The total income earned by all factors of production in an economy is known as ______.
Option 1: Gross National Product (GNP)
Option 2: Net Domestic Product (NDP)
Option 3: Net National Product (NNP)d) Personal income
Option 4: Personal income
Correct Answer: Gross National Product (GNP)
Solution : The correct answer is (a) Gross National Product (GNP)
Gross National Product (GNP) refers to the total income earned by all factors of production, including individuals, businesses, and government entities, within an economy during a specific period. It represents the value of all final goods and services produced by a country's residents, both domestically and abroad.
GNP includes the income earned by domestic factors of production located within the country's borders, as well as the income earned by the country's nationals or residents from their investments or work performed abroad. It measures the overall income generated by the factors of production associated with a particular country, regardless of their location.
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