The fact that gross national product is less than gross domestic product in Canada indicates that
A) the value of profits,dividends,and interest flowing in to Canada exceeds the value flowing out.
B) the value of profits,dividends,and interest flowing out of Canada exceeds the value flowing in.
C) real GDP is less than nominal GDP.
D) net domestic product exceeds gross domestic product.
E) income is falling in Canada.

Question

Quizplus · Accepted Answer

Gross domestic product (GDP) measures the value of all final goods and services produced within a country's borders, regardless of the nationality of the producers. Gross national product (GNP), on the other hand, measures the value of all final goods and services produced by a country's residents, regardless of their location. If a country's GNP is less than its GDP, it means that more profits, dividends, and interest are flowing out of the country than are flowing in, which is the case described in choice B.

The Fact That Gross National Product Is Less Than Gross