Question : Which of the following identities is correct regarding Gross National Product (GNP)?
Option 1: GNP = GDP (Gross Domestic Product) + Factor income earned by the domestic factors of production employed in the rest of the world + Factor income earned by the factors of production of the rest of the world employed in the domestic economy.
Option 2: GNP = GDP – Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy.
Option 3: GNP = GDP + Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy.
Option 4: GNP = GDP – Factor income earned by the domestic factors of production employed in the rest of the world + Factor income earned by the factors of production of the rest of the world employed in the domestic economy.
Correct Answer: GNP = GDP + Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy.
Solution : The correct option is GNP = GDP + Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy.
GDP (Gross Domestic Product) is the total value of all final goods and services produced within a country's borders in a given time. Factor income earned by the domestic factors of production employed in the rest of the world is the income earned by domestic residents from their investments and labour in other countries.
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Question : If exports equal imports, then which of the following relations will be true?
Option 1: Gross Domestic Product (GDP) = Gross National Product (GNP)
Option 2: Gross Domestic Product (GDP) > Gross National Product (GNP)
Option 3: Gross Domestic Product (GDP) < Gross National Product (GNP)
Option 4: None of these
Question : Net National Product of a country is:
Option 1: Gross Domestic Product (GDP) minus depreciation allowances
Option 2: Gross Domestic Product (GDP) plus net income from abroad
Option 3: Gross National Product (GNP) minus net income from abroad
Option 4: Gross National Product (GNP) minus depreciation allowances
Question : Gross Domestic Product (GNP) - Depreciation allowances = ____________.
Option 1: National Income
Option 2: Net Domestic Product (NDP)
Option 3: Net National Product (NNP)
Option 4: Gross National Product (GNP)
Question : What is the full form of GNI?
Option 1: Gross National Interest
Option 2: Gross National Income
Option 3: Gross Net Interest
Option 4: Gross Net Income
Question : The ratio between the nominal and real GDP is called ____.
Option 1: Net national income
Option 2: Value added GDP
Option 3: Green GDP
Option 4: GDP deflator
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