Gross domestic product (GDP)differs from gross national product (GNP)in that:
A) GNP measures the production of a country's permanent residents and property wherever in the world they are located.
B) GNP measures the production of both permanent residents and foreign workers within a country's borders.
C) GNP measures the production of a country's permanent residents and property within a country's borders.
D) GNP measures only the production of foreign workers within a country's borders.

Question

Quizplus · Accepted Answer

GDP measures the value of goods and services produced within a country's borders, while GNP measures the value of goods and services produced by a country's permanent residents regardless of their location in the world. In other words, GNP includes the production that occurs outside a country's borders by its permanent residents and businesses.

Gross Domestic Product (GDP)differs from Gross National Product (GNP)in That