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What Is the Difference Between the GDP (Gross Domestic Product)

Question 3

Multiple Choice

What is the difference between the GDP (gross domestic product) and GNP (gross national product) ?


A) The GDP deals with what is generated within a nation's borders, whereas the GNP deals with what is generated by a nation's factors of production.
B) Both the GDP and GNP account for what a nation's citizens and government, alike, spend, invest and earn. However, the GDP also accounts for indirect tax expenditures.
C) The GDP deals with what is generated by a nation's factors of production, whereas the GNP deals with what is generated within a nation's borders.
D) Both the GDP and GNP account for what a nation's citizens and government, alike, spend, invest and earn. However, the GNP also accounts for indirect tax expenditures.

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