Question

The market value of all final goods and services produced by a country's residents in a year, whether at home or abroad, is called:

A) Gross National Product (GNP).
B) Gross Domestic Product (GDP).
C) Net Domestic Product (NDP).
D) National Income (NI).

Answer 1

The market value of all final goods and services produced by a country's residents in a year, whether at home or abroad, is called Gross National Product (GNP).

Step-by-step explanation:

The market value of all final goods and services produced by a country's residents in a year, whether at home or abroad, is called Gross National Product (GNP). The GNP includes what domestic businesses and labor produce abroad and subtracts the payments foreign labor and businesses located in the country send back to their own countries. This is distinct from the Gross Domestic Product (GDP), which is based on what is produced within the country's borders. It avoids double counting by only including the value of final goods, those at the furthest stage of production at the end of a year. For instance, the value of tires is not counted separately if those tires are already included in the sale price of a truck.