If Turkey has substantially less foreign investment income entering the country than leaving,then we might expect
A) Turkish net foreign factor income to be positive.
B) Turkish net foreign factor income to be zero.
C) Turkish GDP to exceed Turkish GNP.
D) Turkish GNP to exceed Turkish GDP.
E) Turkish GNP to equal Turkish GDP.

Question

Quizplus · Accepted Answer

If Turkey has substantially less foreign investment income entering the country than leaving, it means that Turkey has an outward flow of investments. Consequently, the income earned by Turkish factors of production located abroad would exceed the income earned by foreign factors of production located in Turkey. As a result, Turkish GNP (Gross National Product) would be greater than Turkish GDP (Gross Domestic Product). Hence, option C is the correct choice.

If Turkey Has Substantially Less Foreign Investment Income Entering the Country