Which of the Following Statements About Gross Domestic Product and Gross

question 125

Multiple Choice

Which of the following statements about gross domestic product and gross national product is true?

• A) Gross domestic product includes income payments to foreigners for their work domestically; gross national product does not.
• B) Gross domestic product includes the income earned abroad by domestic citizens; gross national product does not.
• C) Gross domestic product includes exports; gross national product does not.
• D) GDP and GNP are equal.

---

Definitions:

Product Outputs

The final products or services that result from a company’s production process.

Open Systems Model

An approach that views an organization as an entity that interacts with its external environment, exchanging resources, information, and influences.

Transformation Process

The series of actions taken to convert inputs (resources) into outputs (products or services) in business or manufacturing environments.

Feedback Loop

A feedback loop is a process in which the outcomes of a system are circled back and used as inputs for future actions, allowing for continual adjustment and improvement.