Why is GNP called national product?
Answer and explanation
Correct answer: Because it is related to the production and factor income of normal residents
GNP is called national product because its basis is the normal residents of a country rather than merely its geographical territory. It includes residents’ factor income earned abroad and excludes the factor income of non-residents earned domestically through the NFIA adjustment. Production strictly within the territory is the basis of GDP.
Frequently asked questions
What is the correct answer to this question?
Because it is related to the production and factor income of normal residents
Why is this the correct answer?
GNP is called national product because its basis is the normal residents of a country rather than merely its geographical territory. It includes residents’ factor income earned abroad and excludes the factor income of non-residents earned domestically through the NFIA adjustment. Production strictly within the territory is the basis of GDP.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
