Gross national product (GNP)measures the total value of goods and services produced by a country's corporations and individuals. It is standardized by _________________
A) being calculated in Euros.
B) measuring the informal as well as informal economy.
C) being calculated on a per capita basis.
D) adjusting for differences in attitude toward "progress."

Question

Quizplus · Accepted Answer

GNP is usually calculated on a per capita basis, which means it takes into account the population size of the country. This allows for a more accurate representation of a country's economic output, as it measures the total value of goods and services produced per person. A country's GNP can also be adjusted for differences in exchange rates, which would allow for comparisons between countries using different currencies. However, GNP does not measure the informal economy (e.g. bartering, unreported income, etc.) and does not account for differences in attitudes towards progress, so options B and D are not correct. Option A is also not entirely accurate, as GNP can be calculated using any currency, not just Euros.

Gross National Product (GNP)measures the Total Value of Goods and Services