Topics:
CH-6: EMPLOYMENT : GROWTH, INFORMALISATION AND OTHER ISSUES, Indian Economic Development, NCERT Books
GDP and GNP Difference
When we add net earnings from foreign transactions to GDP, we get:
- Net Domestic Product
- Gross National Product — Correct Answer
- Net National Product
- Per Capita Income
Explanation:
Correct Answer Explanation
When we add earnings (plus or minus) from foreign transactions to GDP, what we get is called the country's Gross National Product (GNP).
Key Points:
- GDP = Total money value of all final goods and services produced in a country in a year.
- Net earnings from abroad can be positive, negative, or zero.
- Positive if exports exceed imports; negative if imports exceed exports.
Why Other Options Are Wrong
- A: NDP deducts depreciation from GDP.
- C: NNP deducts depreciation from GNP.
- D: Per capita income divides national income by population.
📚 About this Topic — CH-6: EMPLOYMENT : GROWTH, INFORMALISATION AND OTHER ISSUES
This multiple choice question is from CH-6: EMPLOYMENT : GROWTH, INFORMALISATION AND OTHER ISSUES, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-6: EMPLOYMENT : GROWTH, INFORMALISATION AND OTHER ISSUES to strengthen your preparation.
