The following table provides data for the small country of Nabou.

-Refer to the above table.How much do GNP and GDP differ for Nabou?
A) GDP is larger by $150.
B) GNP is larger by $160.
C) GDP is larger by $310.
D) GNP is larger by $460.

Question

The following table provides data for the small country of Nabou.
 
-Refer to the above table.How much do GNP and GDP differ for Nabou?
A) GDP is larger by $150. 
B) GNP is larger by $160. 
C) GDP is larger by $310. 
D) GNP is larger by $460.

Quizplus · Accepted Answer

GNP is larger by $160 because GNP includes the income from Nabou's investments abroad and the income of foreign workers in Nabou, while GDP only accounts for the production within Nabou's borders.

The Following Table Provides Data for the Small Country of Nabou