Question

If no foreign companies produce in a country, but many of the country's companies produce abroad, then it is probably true that a. the country's GNP exceeds its GDP. b. the country's GDP exceeds its GNP. c. the country's GNP and GDP are equal. d. the country's GDP equals its domestic income.

Name: Problem 17, Chapter 5: Economics: Principles, Applications, and Tools
Uploaded: 2025-11-14T23:32:54-08:00
Duration: 1 min 24 s
Channel: Ivan Kochetkov
Description: If no foreign companies produce in a country, but many of the country's companies produce abroad, then it is probably true that a. the country's GNP exceeds its GDP. b. the country's GDP exceeds its GNP. c. the country's GNP and GDP are equal. d. the country's GDP equals its domestic income.

   If no foreign companies produce in a country, but many of the country's companies produce abroad, then it is probably true that
a. the country's GNP exceeds its GDP.
b. the country's GDP exceeds its GNP.
c. the country's GNP and GDP are equal.
d. the country's GDP equals its domestic income.

Economics: Principles, Applications, and Tools

Arthur O'Sullivan,… 9th Edition

Chapter 5, Problem 17

Instant Answer

Solved by Expert Ivan Kochetkov

11/14/2025

Step 1

GDP is the total value of goods produced and services provided within a country during one year, while GNP is the total value of goods produced and services provided by a country during one year, both domestically and abroad. Show more…

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If no foreign companies produce in a country, but many of the country's companies produce abroad, then it is probably true that a. the country's GNP exceeds its GDP. b. the country's GDP exceeds its GNP. c. the country's GNP and GDP are equal. d. the country's GDP equals its domestic income.

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Key Concepts

Gross Domestic Product (GDP)

GDP represents the total value of all goods and services produced within a country's borders over a specific period, regardless of whether the production is by domestic or foreign entities. It measures the economic activity that occurs within the geographical limits of a nation.

Gross National Product (GNP)

GNP measures the total economic output produced by the residents of a country, whether these activities occur domestically or abroad. This concept includes the production by domestic companies operating internationally, which is not captured by GDP, thereby potentially leading to a GNP that exceeds GDP when significant production takes place outside the country's borders.

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