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 GDP of a country plus the net income earned from abroad, which includes income earned by a country's residents from investments, employment, or businesses outside the country, and subtracts any income earned by foreign residents within the country.
