GNP measures:
A) the same things as GDP,but also includes financial assets.
B) production by U.S.citizens wherever they work in the world.
C) the production of both intermediate and final goods and services.
D) goods and services produced by foreign businesses inside U.S.borders.

Question

Quizplus · Accepted Answer

GNP stands for Gross National Product and measures the total value of goods and services produced by a country's citizens, regardless of their location. Therefore, option B is the correct choice as it measures production by U.S. citizens wherever they work in the world, including foreign subsidiaries and branches of U.S. companies. Option A is incorrect as it talks about financial assets, which are not directly related to production. Option C is incorrect as GNP only measures the value of final goods and services, not intermediate goods. Option D is incorrect as it refers to GDP, not GNP.

GNP Measures