Question

Q. Consider the following statements:

Which of the above is included in the calculation of Gross national product(GNP)?

• A. 1 and 3 only
• B. 2 and 3 only
• C. 1, 2 and 4 only
• D. 1, 2, 3 and 4

Answer 1

The correct option is C 1, 2 and 4 only

Explanation:

• Gross national product (GNP) refers to the total value of all the goods and services produced by the citizens and businesses of a country, irrespective of the location of production.
• It excludes the income generated by foreign nationals who are residing in the country.
• The GNP includes the following economic activities
  • Indian company working in India
  • Indian company working abroad
  • Indian citizen working abroad
• Foreign company working in India is included in GDP but not GNP