Gross Domestic Product (GDP) at market price plus net factor income from abroad gives

Assessment: WAEC SSCE - Economics - 2002 (Objective) Subject: Economics

Question 1 Report

Gross Domestic Product (GDP) at market price plus net factor income from abroad gives
Answer Details
The term "Gross Domestic Product (GDP)" refers to the total value of all goods and services produced within a country's borders in a given period of time. However, some factors of production, such as labor or capital, may be owned by foreigners. In such cases, the net factor income from abroad refers to the difference between the income earned by domestic factors of production in foreign countries and the income earned by foreign factors of production in the domestic country. By adding net factor income from abroad to GDP at market price, we get Gross National Product (GNP), which is the total value of all goods and services produced by a country's domestic factors of production, regardless of their location. Therefore, the correct option is "gross national product."

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