When comparing GNP to GDP, it is correct to say that
A) GNP is a better indicator of economic progress than GDP.
B) GNP treats activities that harm our quality of life as costs and gives them negative values.
C) GNP is a better measure of economic growth for advanced industrial countries, but GDP is a better measure for developing countries.
D) the activities required to clean up an oil spill are not included in the calculation of GDP.
E) none of these is correct.

Question

Quizplus · Accepted Answer

GNP (Gross National Product) and GDP (Gross Domestic Product) are both measures of economic activity, but neither inherently provides a better indicator of economic progress, treats activities that harm quality of life as costs, nor is specifically better for advanced or developing countries. Additionally, the activities required to clean up an oil spill would actually be included in GDP calculations, as they represent economic activity.

When Comparing GNP to GDP, It Is Correct to Say