Question : Which of the following represents the value of all goods and services produced by the citizens 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 value of all goods and services produced by the citizens of a country, whether within the country's borders or abroad. GNP takes into account the income earned by a country's residents from their economic activities, regardless of the geographic location of those activities.
GNP includes not only the production that occurs within the country but also the production carried out by its citizens in other countries. It considers the income earned by citizens from factors of production they own, such as labor and capital, both domestically and internationally.
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