| 1. GDP is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time. |
| 2. GNP refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time |
A) 1 only
B) 2 only
C) 1 and 2
D) Neither 1 nor 2
Correct Answer: C
Solution :
In the calculation of GNP, we include the money value of goods and services produced by nationals outside the country. Hence, income produced and received by nationals of a country within the boundaries of foreign countries should be added in Gross Domestic Product (GDP) of the country. Similarly, income received by foreign nationals within the boundary of the country should be excluded from GDP.
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