Refer to the information provided in Table 6.7 below to answer the questions that follow.
Table 6.7
-If receipts of factor income from the rest of the world are less than payments of factor income to the rest of the world, then
A) GDP is greater than GNP.
B) GDP equals GNP.
C) GNP equals NNP.
D) GNP is greater than GDP.

Question

Refer to the information provided in Table 6.7 below to answer the questions that follow.
Table 6.7 
-If receipts of factor income from the rest of the world are less than payments of factor income to the rest of the world, then
A) GDP is greater than GNP. 
B) GDP equals GNP. 
C) GNP equals NNP. 
D) GNP is greater than GDP.

Quizplus · Accepted Answer

When receipts of factor income from the rest of the world are less than payments, net factor income from abroad is negative, making GDP greater than GNP.

Refer to the Information Provided in Table 6