Question

When we add Net factor income from abroad to GDP, we get:

Options

• None of these

• Net Domestic Product

• Net National Product

• Gross National Product

Answer 1

Gross National Product

Explanation:

NFIA refers to the net flow of property income to and from the rest of the world (net payments on income) plus the net flow of compensation of employees (net receipts on compensation). The NFIA is added to the Gross Domestic Product (GDP) to come up with the Gross National Product (GNP).