When looking at the total market value of all goods and services produced within a given time period by American residents, whether these people are located in the United States or abroad, is this GDP or GNP?
A)GDP
B)GNP

Question

Quizplus · Accepted Answer

GNP is the total market value of all goods and services produced within a given time period by American residents, whether located in the United States or abroad.
Key Takeaway: It is imperative for this exam that you know the difference between GDP and GNP. Gross domestic product is the market value of all the final goods and services that is produced by an economy within a given period of time. Remember not to confuse gross domestic product with gross national product, which refers to the market value of all of the final goods and services produced with U.S. resources-even if the resources or producing firms are not located in the United States.

When Looking at the Total Market Value of All Goods