For large industrialized countries like the United States, we know that:

Question

Quizplus · Accepted Answer

GNP (Gross National Product) is the total value of goods and services produced by a country's residents and businesses, including income earned from abroad. GDP (Gross Domestic Product) is the total value of goods and services produced within a country's borders, regardless of who produced them.

For large industrialized countries like the US, there tends to be a relatively small difference between GDP and GNP because they have significant foreign investments and operations, which can offset income earned by foreign entities within the US. Therefore, choice B - the difference between GDP and GNP will be relatively small - is the best choice.

For Large Industrialized Countries Like the United States, We Know