Question : Which of the following is a measure of national income that takes into account the value of goods and services produced by a country's residents both domestically and abroad?
Option 1: Gross Domestic Product (GDP)
Option 2: Gross National Product (GNP)
Option 3: Net Domestic Product (NDP)
Option 4: Net National Product (NNP)
Correct Answer: Gross National Product (GNP)
Solution : The correct answer is (b) Gross National Product (GNP)
Gross National Product (GNP) is a measure of national income that takes into account the value of goods and services produced by a country's residents both domestically and abroad. GNP includes the income earned by the country's residents from their economic activities, whether they are located within the country or outside its borders. It represents the total value of final goods and services produced by the country's nationals, including their earnings from domestic production and their earnings from production abroad.
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