Correct Answer: If the factor income from abroad is greater than the factor income paid abroad, then the Gross National Product (GNP) would be greater than the Gross Domestic Product (GDP).

Solution : The correct answer is If the factor income from abroad is greater than the factor income paid abroad, then the Gross National Product (GNP) would be greater than the Gross Domestic Product (GDP).

When the amount paid to and received from overseas equals one, the factor will be zero. When factor income received from overseas exceeds factor income paid overseas, net factor income from abroad (NFIA) will be positive. On the other hand, if the foreign factor income is less than the foreign factor income paid, the result will be negative.