Gross national product minus net factor earnings from abroad is equal to gross domestic product.

Question

Quizplus · Accepted Answer

Gross National Product (GNP) minus net factor earnings from abroad equals Gross Domestic Product (GDP) because GNP includes the value of goods and services produced by a country's residents, regardless of location, while GDP includes only those produced within the country's borders. Subtracting net factor earnings from abroad adjusts GNP to reflect only domestic production, which is GDP.

Gross National Product Minus Net Factor Earnings from Abroad Is