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GDP vs GNP
- GDP (Gross Domestic Product) - Market value of all goods and services produced in the domestic country. It can also be seen as the total income earned in the domestic country. Example: Any income earned by an American, Canadian or Mexican person in USA would be counted in America's GDP.
- GNP (Gross National Income) - Income earned by all citizens of a nation (inside and outside their home country). Example: Any income earned by an American inside or outside the USA would be included in America's GNP.
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Example: GDP vs GNP
If the GDP of France is greater than its GNP, this means:
A) the income of foreigners in France is greater than the income of French citizens abroad
B) the income of French citizens abroad is greater than the income of foreigners in France
C) the income of French citizens abroad is the same as the income of foreigners in France
D) cannot be determined
A
French people working in France goes in both GDP and GNP so that does not affect your answer. Foreigners in France only goes in France's GDP. French citizens working abroad only goes in France's GNP. So if the GDP is higher than GNP that means option A must be true.
Practice: GDP vs GNP
The income earned by Brazilians in Brazil is $100 million, the income earned by foreigners in Brazil is $50 million, and the income earned by Brazilians working outside of Brazil is $20 million. Which of the following is correct: