Which best describes a key difference between gross national product (GNP) and gross domestic product (GDP)?
a. GDP is the value of all the goods and services that citizens of a state produce, whether they live inside the country or abroad; GNP is the sum of all goods and services produced within the borders of a particular state, whether by citizens or not.
b. GNP is the value of all the goods and services that citizens of a state produce, whether they live inside the country or abroad; GDP is the sum of all goods and services produced within the borders of a particular state, whether by citizens or not.
c. GNP is the value of all the goods and services that citizens of a state produce, whether they live inside the country or abroad; GDP is that number divided by the number of people in that state.
d. GDP is the value of all the goods and services that citizens of a state produce, whether they live inside the country or abroad; GNP is that number divided by the number of people in that state.
e. GNP is the sum of all goods and services produced within the borders of a particular state, whether by citizens or not; GDP adjusts that for comparative purposes by comparing how much one can purchase with the same amount of money in different countries.
Question 2
The purpose of presenting economic data in constant dollars is to
a. control for increased value due to inflation.
b. control for the value of different currency.
c. present data in the actual market value of the currency being studied.
d. take into account the cost of living in a given country.
e. take into account the distribution of wealth among a country's population.
