The main difference between GNP and GDP is:
a. GDP measures a nation's income, and GNP measures a nation's output.
b. Largely in the minds of the public, because economically, there is no difference.
c. GDP measures the income earned from the production of all final goods and services within a nation's borders; GNP measures the income earned by domestically-owned resources from producing final goods and services anywhere in the world.
d. GDP measures a nation's output, and GNP measures a nation's income.
Question 2 - Assuming GDP remains constant, if Country A has a deficit in its balance on goods and services, then which of the following will make it more negative?
a. Increased investment.
b. Increased saving.
c. Increased taxes.
d. Reduced government spending.
e. None of the above.
Question 3 - GNP and GDP:
a. Are quite different because GDP measures a nation's income, and GNP measures a nation's output.
b. Both measure a nation's income and output.
c. Are quite different, because GNP measures a nation's income and GDP measures a nation's output.
d. Are both stock measures of a nation's output.
e. Are both stock measures of a nation's income.
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