The Main Difference Between GDP and GNP Is That GNP

question 35

Multiple Choice

The main difference between GDP and GNP is that GNP excludes:

• A)​net income of foreigners.
• B)​consumption of fixed capital.
• C)​transfer payments.
• D)​government purchases.

Comprehend the economic functions of profits and losses and their impact on resource allocation.

Recognize the significance of competition and innovation in a market system.

Grasp the Five Fundamental Questions of economics within a market system.

Identify unique characteristics of a market system including private ownership and competition.

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Definitions:

Sustainability

The ability to maintain or improve resources or processes in a way that does not deplete the underlying environmental, social, or economic systems.

Depleting Resources

Natural resources that are diminishing due to usage or exploitation faster than they are replenished.

Natural Resources

Physical materials and substances occurring naturally in the environment that can be used for economic gain, such as water, minerals, forests, and fossil fuels.

Due Process

The fair treatment through the normal judicial system, especially as a citizen's entitlement.