Which of the following is included in Gross National Product (GNP) but NOT in Gross Domestic Product (GDP)?

easy Q2 of 15

Economic Awareness - Sectors of Indian Economy

AValue of goods produced by foreign companies within the country

BGovernment expenditure on domestic infrastructure

CIncome earned by residents from investments abroad

DValue of services produced domestically

Step-by-Step Solution

Step 1: Understand difference between GDP and GNP
GDP measures production within the country regardless of ownership, while GNP includes net income from abroad earned by residents.
Step 2: Analyze options
Income earned by residents from investments abroad is included in GNP but excluded from GDP. Foreign companies' domestic production is part of GDP, not GNP.
Final Answer:
Income earned by residents from investments abroad → Option C
Quick Check:
Income earned by residents from abroad included in GNP only ✅

Quick Trick: GNP = GDP + net income from abroad.

Common Mistakes:

Including foreign companies' domestic production in GNP or confusing government expenditure.

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