Economic Awareness - Sectors of Indian Economy
Which of the following best explains the difference between GDP and GNP?
Which of the following best explains the difference between GDP and GNP?
medium Q6 of 15
Step-by-Step Solution
Step 1: Recall GDP and GNP definitions
GDP measures production within the country; GNP adjusts GDP by adding net income earned by residents from abroad.Step 2: Analyze options
Only the statement that GNP includes net income from abroad and GDP does not is correct. The other options are incorrect or misleading.Final Answer:
GNP includes net income from abroad; GDP does not → Option DQuick Check:
GNP = GDP + net income from abroad ✅
Quick Trick: GNP adjusts GDP by net income from abroad.
Common Mistakes:
- Reversing the roles of GDP and GNP or confusing depreciation.
Master "Sectors of Indian Economy" in Economic Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Economic Awareness Quizzes