The value of a country's GDP exceeds that of the country's GNP if the value of the:
A) country's exports exceeds the value of its imports.
B) country's imports exceed the value of its exports.
C) output produced by foreign workers in the country exceeds the value of output produced by the country's permanent residents in other countries.
D) output produced by the country's permanent residents produced in other countries exceeds the value of output produced by foreign workers in the country.

Question

Quizplus · Accepted Answer

GDP measures the value of all goods and services produced within a country's borders, while GNP measures the value of goods and services produced by a country's residents, regardless of location. If foreign workers produce more within the country than the country's residents produce abroad, GDP will be higher than GNP.

The Value of a Country's GDP Exceeds That of the Country's