CA Foundation P4 · Chapter 5 · Question 1 of 15
Gross National Product (GNP) is equal to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) GDP plus net factor income from abroad
Explanation
GDP measures output produced within the domestic territory. GNP measures income of normal residents, so GNP = GDP + NFIA (factor income received from abroad minus factor income paid abroad). GDP minus depreciation gives NDP.
More Determination of National Income MCQs
- Q3A farmer grows wheat worth Rs. 500 (no purchased inputs) and sells it to a miller, who makes flour sold to a baker for Rs. 800. The baker…
- Q4Which of the following is excluded from national income?
- Q5In an open economy, private consumption expenditure = Rs. 3,000 crore, gross investment = Rs. 800 crore, government final consumption…
- Q6Nominal GDP of a year is Rs. 6,600 crore and the GDP deflator for that year is 120 (base year = 100). Real GDP is:
- Q7If the marginal propensity to consume is 0.8, the value of the investment multiplier in a simple two-sector Keynesian model is: