Question

Q. Gross National Product is obtained from the Gross Domestic product by adjusting it for ____.

• A. Net Factor Income from abroad
• B. Net Indirect taxes
• C. Depreciation
• D. Net Imports

Answer 1

The correct option is A Net Factor Income from abroad

Explanation:

• GDP (Gross Domestic Product) is a measure of (national income = national output = national expenditure) goods and services produced in a particular country.
• GNP (Gross National Product) = GDP + net Factor income from abroad.
• Net factor income from abroad: It is the difference between factor incomes earned by our residents from the rest of the world and factor income earned by the non-residents in our domestic territory.