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The difference between GDP and GNP

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The difference between GDP and GNP

A.

Consumption of fixed capital

B.

Indirect business tax

C.

Net factor income from abroad

D.

Public transfer payment

Correct answer is C

The main difference is that GNP (Gross National Product) takes into account net income receipts from abroad. GDP (Gross Domestic Product) is a measure of (national income = national output = national expenditure) produced in a particular country. GNP = GDP + net property income from abroad.