GNP=GDP+__________:a)Depreciationb)Indirect taxesc)NIFAd)SubsidiesCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Gross Domestic Product (GDP) and Gross National Product (GNP) both try to measure the market value of all goods and services produced for final sale in an economy. ... GNP measures the levels of production of all the citizens or corporations from a particular country working or producing in any country.

Answer

We have to add NFIA bcoz we have to go national therefor we have to add NFIA in domestic

Answer

Explanation:

GNP (Gross National Product) vs. GDP (Gross Domestic Product):
Gross National Product (GNP) is the total value of all final goods and services produced by a country's residents in a specific time period, while Gross Domestic Product (GDP) is the total value of all final goods and services produced within a country's borders in a specific time period.

Calculation of GNP:
GNP is calculated by adding GDP and Net Income from Abroad (NIF). Net Income from Abroad is the difference between income earned by residents of a country from overseas investments and income earned by foreigners from investments in the country.

Formula for GNP:
GNP = GDP + Net Income from Abroad (NIF)

Net Income from Abroad (NIF):
Net Income from Abroad includes income earned by residents from foreign investments minus income earned by foreigners from investments in the country. It reflects the difference between income flowing into a country and income flowing out of the country.

Conclusion:
In conclusion, GNP is calculated by adding GDP and Net Income from Abroad (NIF). The formula for GNP is GNP = GDP + NIF. This adjustment is necessary to account for the difference between a country's domestic production and the income earned by its residents from overseas investments.

Similar CA Foundation Doubts

GNP=GDP+__________

GDPMP=GDPFC+________

Which of the following is not correct?

GDP at factor cost + GDP at market price–(minus) _________ +(plus) subsidies

GDP at Factor Cost = GDP at Market Price minus indirect taxes plus ____.

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