Economics Gdp Questions
The difference between GDP and GNP at basic prices lies in the scope of economic activity they measure. GDP (Gross Domestic Product) at basic prices measures the total value of all goods and services produced within a country's borders, regardless of the nationality of the producers. On the other hand, GNP (Gross National Product) at basic prices measures the total value of all goods and services produced by a country's residents, regardless of where they are located. In other words, GDP includes both domestic and foreign production within a country, while GNP includes only the production by a country's residents, whether it occurs domestically or abroad.