Economics Gdp Questions
The difference between GDP and GNP at current prices lies in the scope of economic activity they measure. GDP (Gross Domestic Product) 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) measures the total value of all goods and services produced by a country's residents, regardless of where they are located.
The distinction arises because GDP includes the production of foreign residents within a country's borders, while GNP includes the production of a country's residents both domestically and abroad. In other words, GDP focuses on the economic activity within a country's territory, while GNP focuses on the economic activity generated by a country's residents.