Choose the correct option.

Statement I: GNI includes the income earned from overseas sources.

Statement II: GDP includes the income produced within the boundaries of a country.

Both the statements are true.

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Both the statements are false.

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Statement I is true, but statement II is false.

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Statement I is false, but statement II is true.

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Solution

The correct option is A Both the statements are true.
Gross National Income or GNI includes the income earned from overseas sources, whereas the Gross Domestic Product or GDP includes only the income produced within the boundaries of a country. Therefore, the GNI gives a holistic picture of the value earned by a country’s people rather than the GDP.

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Similar questions

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Which of the above statements is are correct?

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Which of the above statement(s) is/are correct?

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Analyse the above statement, and choose the correct option.

Which of the following components is/are included in Net Factor Income from Abroad ?

Code:

Only 1, 2 & 3
Only 2 & 4
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All of these

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Choose the correct option. Statement I: GNI includes the income earned from overseas sources. Statement II: GDP includes the income produced within the boundaries of a country.

Choose the correct option.

Statement I: GNI includes the income earned from overseas sources.

Statement II: GDP includes the income produced within the boundaries of a country.