The value of GDP differs from the value of GNP because:
A) net exports are excluded from GDP but included in GNP.
B) production in a country usually employs factors of production owned by residents of other countries.
C) production in a country employs only factors of production owned by its residents.
D) government purchases are excluded from GDP but included in GNP.

Question

Quizplus · Accepted Answer

GNP includes production by factors of production (such as foreign workers) that are owned by residents of the country, even if that production takes place outside of the country. GDP only includes production that takes place within the country's borders, regardless of the ownership of the factors of production.

The Value of GDP Differs from the Value of GNP