An economy records a Gross Domestic Product (GDP) of \text{N}620\text{ million}. If the Ne… — JAMB UTME

An economy records a Gross Domestic Product (GDP) of $\text{N}620\text{ million}$ . If the Net Factor Income from Abroad (NFIA) is $\text{N}45\text{ million}$ , what is the value of the Gross National Product (GNP) in million Naira?

Answer: 665 million Naira

Answer

The Gross National Product (GNP) is

\text{N}665\text{ million}

Gross National Product (GNP) measures the total income earned by residents of a country. It is calculated by adding Net Factor Income from Abroad (NFIA) to the Gross Domestic Product (GDP). Here,

\text{GNP} = 620 + 45 = 665\text{ million Naira}

Step-by-Step Solution

State the relationship between Gross Domestic Product (GDP) and Gross National Product (GNP).

\text{GNP} = \text{GDP} + \text{NFIA}

Gross National Product includes net income earned by domestic citizens from abroad in addition to domestic production.

Substitute

\text{GDP} = 620\text{ million}

and

\text{NFIA} = 45\text{ million}

into the equation.

\text{GNP} = 620 + 45 = 665\text{ million Naira}

Adding Net Factor Income from Abroad directly converts GDP into GNP.

Key Concept

Gross National Product (GNP) Calculation

Question

Answer

Step-by-Step Solution

Key Concept

Common Mistakes

Topics

More questions from this topic