The difference between the Gross National Products (GNP) and the Gross Domestic Product (GDP) is
The correct answer is D. net income from abroad
Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country's geographical borders, regardless of whether the production is done by residents or non-residents.
GDP focuses on the economic activity that occurs within the country.
On the other hand, Gross National Product (GNP) measures the total value of goods and services produced by a country's residents, both domestically and abroad.
GNP takes into account the net income generated by a country's citizens from their economic activities outside the country.
The difference between Gross National Product (GNP) and Gross Domestic Product (GDP) lies in the measurement of net income from abroad.
The net income from abroad is the key difference between GNP and GDP.
It represents the income earned by a country's residents from their economic activities outside the country, minus the income earned by foreign residents within the country.
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