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Consider the following statements:

  1. GDP is the total money value of all final goods and services produced within the geographical boundaries of the country during a given period of time.

  2. GNP refers to the money value of total output or production of final goods and services produced by the nationals of a country during a given period of time


Which among the above statements is / are correct?
Options:
A .  2 only
B .  1 and 2
C .  1 only
D .  Neither 1 nor 2
Answer: Option B
Answer: (b)
In the calculation of GNP, we include the money value of goods and services produced by nationals outside the country.
Hence, income produced and received by nationals of a country within the boundaries of foreign countries should be added to the Gross Domestic Product (GDP) of the country.
Similarly, income received by foreign nationals within the boundary of the country should be excluded from GDP.

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