Question

Why is the net national product (NNP) considered the true measure of national output rather than the gross domestic product (GDP)?

• A. NNP considers the final value of both goods and services.
• B. NNP calculates the money of the goods and services produced.
• C. NNP considers the production of citizens based in both domestic and foreign market.
• D. Only NNP calculates the domestic production of goods and services.

Answer 1

The correct option is C NNP considers the production of citizens based in both domestic and foreign market.

Gross domestic product calculates the final money value of total goods and services produced within a country, while net national product considers the monetary value of finished goods and services produced by a country's citizens, both overseas and domestically. Therefore, NNP is considered as the true national output.