Economics Gdp Questions
The difference between GDP and GNP at factor cost lies in the scope of measurement. 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) at factor cost measures the total value of all goods and services produced by the residents of a country, regardless of where they are located. In other words, GDP includes both domestic and foreign production within a country, while GNP only includes the production of a country's residents, whether it occurs domestically or abroad.