The Difference Between GNP and NNP Is Equal To

question 91

Multiple Choice

The difference between GNP and NNP is equal to:

• A) the statistical discrepancy in calculation.
• B) the capital consumption allowance.
• C) the transfer payments.
• D) the value of net exports.
• E) the change in inventory.

---

Definitions:

Economic Integration

The process by which different countries reduce trade barriers and coordinate their economic policies to facilitate trade and investment flows between them.

NAFTA

stands for the North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico that eliminated most tariffs and barriers to trade and investment.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure the free movement of people, goods, services, and capital.

GDP

Short for Gross Domestic Product, it measures the total economic output of a country within a specific time frame.