If GNP is $200 billion, receipts of factor income from the rest of the world are $10 billion, and payments of factor income to the rest of the world are $30 billion, then GDP is
A) $160 billion.
B) $210 billion.
C) $220 billion.
D) $240 billion.

Question

Quizplus · Accepted Answer

The formula for GDP is:

GDP = GNP - Receipts of Factor Income from the Rest of the World + Payments of Factor Income to the Rest of the World

Substituting the given values, we get:

GDP = $200 billion - $10 billion + $30 billion
GDP = $220 billion

If GNP Is $200 Billion, Receipts of Factor Income from the Rest