Fairly easy

Gross national product differs from gross domestic product because GNP includes net income earned from:

Correct answer: A. Foreign production by domestic factors

  • A. Foreign production by domestic factors
  • B. Domestic production by foreign factors
  • C. Government transfers to households
  • D. Depreciation of fixed capital

Explanation

GNP measures the income generated by a country's residents and owned factors, regardless of where production occurs. It equals GDP plus net factor income from abroad, while option b is already included in domestic GDP.

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About Economy of Pakistan

Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.

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