The GNP of a country for a certain year was $340,000.If the contribution of its factors of production to the production of various goods and services in other countries was worth $140,000 and the contribution of foreign factors of production in the production of goods and services in this country was worth $50,000,the GDP of the country for that year was ________.
A) $430,000
B) $160,000
C) $250,000
D) $480,000

Question

Quizplus · Accepted Answer

GNP (Gross National Product) = GDP (Gross Domestic Product) + Net factor income from abroad
$340,000 = GDP + ($140,000 - $50,000)
$340,000 = GDP + $90,000
GDP = $340,000 - $90,000
GDP = $250,000
Therefore, the GDP of the country for that year was $250,000 (Choice C).

The GNP of a Country for a Certain Year Was