Use the information below to answer these questions
Depreciation = $40,000
Gross Domestic Product = $100,000
Factor Payments to Foreigners = $20,000
Factor Receipts from Abroad = $25,000
The Gross National Product is equal to
- $40,000
- $50,000
-
$105,000
- $125,000
The correct answer is: C
Explanation
GNP = GDP + Factor Receipts from Abroad − Factor Payments to Foreigners
Given: GDP = $100,000
Factor Receipts from Abroad = $25,000
Factor Payments to Foreigners = $20,000
GNP = 100000 + 25000 - 20000 = $105, 000