Consider the following statement : Statement I : Gross National Product will always be more than the GDP. Statement II : To get GNP, net factor income from abroad is added to GDP. Find the correct answer :

🔑Key Points:
 GNP is known as gross national product and represents the total value of goods and services produced by the residents of a country during a financial year.

• It takes the income earned by the citizens of the country present within or outside the country into consideration. It excludes the income generated by the foreign nationals who are residing in the country. It can be calculated as:
GNP = GDP + NR – NP
Where,
GDP = Gross domestic product
NR = Net income receipts
NP = Net outflow to foreign assets
Gross National Product is mostly lower than the Gross Domestic Product. If the income earned by domestic firms in overseas countries exceeds the income earned by foreign firms within the country, only then, GNP is higher than the GDP.