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The difference between GDP and GNP

Economics
WAEC 2016

The difference between GDP and GNP

  • A. consumption of fixed capital
  • B. indirect business tax
  • C. net factor income from abroad
  • D. public transfer payment
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Correct Answer: Option C
Explanation

The main difference is that GNP (Gross National Product) takes into account net income receipts from abroad. GDP (Gross Domestic Product) is a measure of (national income = national output = national expenditure) produced in a particular country. GNP = GDP + net property income from abroad.


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