Question : Which of the following represents the income earned by residents of a country, whether within the country or 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) represents the total income earned by residents of a country, whether they are located within the country's borders or abroad. GNP takes into account the income generated by the factors of production owned by the country's residents, regardless of where those factors are employed.
GNP includes not only the income generated from production within the country but also the income earned by the country's residents from their economic activities abroad. It considers the wages, salaries, profits, and other forms of income earned by the citizens of a country, regardless of their geographic location.
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