Question

GNP is a better measure of total economic output in the U.S. than GDP. Select one: True False

Answer 1

Gross National Product (GNP) is not a better measure of total economic output in the U.S. than Gross Domestic Product (GDP).

Step-by-step explanation:

Gross National Product (GNP) is not a better measure of total economic output in the U.S. than Gross Domestic Product (GDP).

GDP includes only what country produces within its borders, while GNP adds what domestic businesses and labor abroad produces, and subtracts any payments that foreign labor and businesses located in the United States send home to other countries.

For the United States, the gap between GDP and GNP is relatively small; in recent years, only about 0.2%. For small nations with a substantial share of their population working abroad and sending money back home, the difference can be substantial.

Learn more about Gross National Product vs. Gross Domestic Product