economics medium Fill in the Blank

Gross National Product (GNP) is calculated by adding ___ to the Gross Domestic Product (GDP) of a country.

  1. durable (or capital / physical)
  2. Net Factor Income from Abroad (NFIA)
  3. multiplier
  4. product

Answer: Net Factor Income from Abroad (NFIA)

While GDP measures the value of goods and services produced within a country's geographical boundaries regardless of nationality, GNP measures the total value produced by the residents of a country, both domestically and abroad. Therefore, GNP = GDP + (Factor income earned by domestic residents abroad - Factor income earned by foreign residents domestically).

Topic Macroeconomics - National Income
Exam Relevance SSC, Railway, UPSC
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