Final answer:
The answer is 1. True. GNP (Gross National Product) is the value of final goods and services produced by labor and capital supplied by U.S. residents, even if the production occurs outside the United States. It takes into account both domestic and international production by U.S. citizens and firms.
Step-by-step explanation:
The answer is 1. True. GNP (Gross National Product) is indeed the value of final goods and services produced by labor and capital supplied by U.S. residents, even if the production occurs outside the United States. Unlike GDP (Gross Domestic Product) which only includes what a country produces within its borders, GNP takes into account what domestic businesses and labor abroad produce.
For example, if a U.S. resident works for a company in another country and earns income from that job, their earnings would be included in the GNP of the United States. Similarly, if a U.S. business operates overseas and generates revenue, that revenue would contribute to the GNP. However, any payments that foreign labor and businesses located in the United States send home to other countries are subtracted from GNP.