China's Gross National Product Can Be Calculated from China's GDP

question 113

Multiple Choice

China's gross national product can be calculated from China's GDP by:

• A) adding the value of output produced by China's residents and sold abroad.
• B) adding the income earned by China's residents from the rest of the world and subtracting payments made by China's residents to the rest of the world.
• C) subtracting the value of output produced by China's residents and sold abroad.
• D) subtracting the income earned by China's residents from the rest of the world and adding payments made by China's residents to the rest of the world.

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Definitions:

Private Cost

The cost of a production activity that is directly borne by an enterprise.

Gallon

A gallon is a unit of volume measurement used primarily in the United States, equal to 3.785 liters.

Externality

An outcome from economic actions affecting external third parties not related to the activity, which could be either advantageous or detrimental.

Market

A system or an area where buyers and sellers interact to trade goods, services, or financial instruments.