Question : Which of the following represents the income earned by foreign factors of production located within a country?
Option 1: Gross National Product (GNP)
Option 2: Net Domestic Product (NDP)
Option 3: Net National Product (NNP)
Option 4: Personal income
Correct Answer: Gross National Product (GNP)
Solution : The correct answer is (a) Gross National Product (GNP).
Gross National Product (GNP) represents the total value of all final goods and services produced by a country's residents, regardless of their location. It includes the income earned by both domestic factors of production and foreign factors of production located within the country.
The income earned by foreign factors of production located within a country is referred to as net factor income from abroad. This includes income such as wages, salaries, profits, rents, and interest earned by foreign individuals, companies, or institutions that are engaged in economic activities within the country.
