The main difference between GDP and GNP is that GNP excludes:
A)net income of foreigners.
B)consumption of fixed capital.
C)transfer payments.
D)government purchases.

Question

The main difference between GDP and GNP is that GNP excludes:
A)​net income of foreigners.
B)​consumption of fixed capital.
C)​transfer payments.
D)​government purchases.

Quizplus · Accepted Answer

GNP (Gross National Product) excludes net income of foreigners, while GDP (Gross Domestic Product) measures the total economic output within a country's borders, regardless of who owns the factors of production.

The Main Difference Between GDP and GNP Is That GNP