If Pakistan's GDP exceeds Pakistan's GNP, then ?
Correct answer: B. foreigners are producing more in the Pakistan then Pakistanis are producing in foreign countries
- A. intermediate production exceeds final production
- B. foreigners are producing more in the Pakistan then Pakistanis are producing in foreign countries
- C. real GNP exceeds nominal GNP
- D. real GDP exceeds nominal GDP
Explanation
GDP counts production within Pakistan, while GNP counts production by Pakistani-owned factors, wherever they operate. GDP exceeding GNP therefore indicates that foreign factors produce more inside Pakistan than Pakistani factors produce abroad.
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