Question

Distinguish between Gross national product and Gross domestic product.

Answer 1

Basis	Gross National Product(GNP)	Gross Domestic Product(GDP)
1. Definition	GNP considers all the goods and services produced by the normal residents of a country both within the domestic territory and outside the country.	GDP refers to the market value of all the final goods and services produced within the domestic country during an accounting year, including depreciation.
2. Net factor Income from abroad	It includes the net factor income from abroad.	It excludes the net factor income from abroad.
3. Formula	GNP = Consumption + Investment + Government expenditure +  (exports − import) + (receipts from abroad − payments made abroad)	GDP = Consumption + Investment + Government expenditure +  exports − import