Which of the following statements is true?
A)GDP and GNP are always the same because the net factor payments from abroad is always zero.
B)GDP is always greater than GNP because the net factor payments from abroad is always negative.
C)GNP is always greater than GDP because the net factor payments from abroad is always positive.
D)GDP may be greater,equal,or smaller than GNP because the net factor payments from abroad may be negative,zero,or positive.

Question

Quizplus · Accepted Answer

GDP and GNP differ in how they account for net factor payments from abroad. If the net factor payments are negative, then GDP will be smaller than GNP. If the net factor payments are positive, then GNP will be greater than GDP. If the net factor payments are zero, then GDP and GNP will be the same. Therefore, GDP may be greater, equal, or smaller than GNP depending on the net factor payments from abroad.

Which of the Following Statements Is True