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Consider the following items:
1. Consumer goods and services
2. Gross private domestic investment
3. Goods and services produced by the Government
4. Net income from abroad
Which of the above items are included in GNP?
1, 2 and 3 only
1, 2 and 4 only
3 and 4 only
1, 2, 3 and 4
- Gross National Product (GNP) measures the total economic output of a country, including all goods and services produced by its nationals, both domestically and abroad.
- Item 1: Consumer goods and services
- These are part of GNP as they contribute to the country's total economic output.
- Item 2: Gross private domestic investment
- This includes all private sector investment within the nation, contributing to GNP.
- Item 3: Goods and services produced by the Government
- These are included in GNP as part of the total production.
- Item 4: Net income from abroad
- This is crucial for GNP, which includes incomes earned by nationals overseas.
The correct option is Option 4: 1, 2, 3 and 4, as all these items are included in the calculation of GNP.
By: Udit Singla ProfileResourcesReport error
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