If a country has attracted a relatively large number of foreign workers and a large amount of foreign investment,
A) national income will generally exceed gross national product.
B) gross national product will generally exceed gross domestic product.
C) net domestic product will generally exceed gross domestic product.
D) gross domestic product will generally exceed gross national product.

Question

Quizplus · Accepted Answer

If a country has attracted a relatively large number of foreign workers and a large amount of foreign investment, it is likely that there will be an increase in its gross domestic product (GDP). This is because the foreign workers and investment will contribute to the country's economic activity and output, which is included in the calculation of GDP. However, the country's gross national product (GNP) may not necessarily be higher than GDP, as GNP takes into account the total income earned by a country's residents, regardless of their location. If the foreign workers are not considered residents of the country for GNP purposes, then GNP may be lower than GDP. Therefore, the best answer is D: gross domestic product will generally exceed gross national product.

If a Country Has Attracted a Relatively Large Number of Foreign