Question

The ratio of a country's exports to its total output (GNP or GDP) Select one: a. is known as the index of openness. b. provides a rough measure of the importance of international trade to that economy. c. if calculated for the United States would be quite low. d. All of the above. Clear my choice Question 2 Answer saved Points out of 1.00 Not flaggedFlag question Question text The difference between a country's Gross National Product (GNP) and its Gross Domestic product (GDP) is that Select one: a. GNP refers to production within the nation while GDP refers to production by domestic factors no matter where they are located. b. GNP is always bigger than GDP. c. GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located. d. All of the above are true.

Answer 1

1. d. All of the above are true.

2. c. GDP refers to production within the nation while GNP refers to production by domestic factors no matter where they are located.

Step-by-step explanation:

1. The ratio of country's exports to GDP is known as trade-to-GDP ratio or the index of openness. This ratio main objective is to measures the importance of international trade in an economy and its usually remain high for developing countries.

2. The only difference between GDP and GNP is that of net factor income from abroad. While GDP only takes into account production of goods and services within the country's borders; GNP takes into account production of all economy owned identities, no matter where they are located.