Consider the following items: 1. Consumer goods and services 2. Gross private domestic investment 3. Goods and services produced by the government 4. Net income from abroad Which of the above items are included in GNP?

EPFO 2016 PYQ with Answer — Consider the following items: 1. Consumer goods and services 2. Gross…

2016 · Q26

Consider the following items:

1Consumer goods and services
2Gross private domestic investment
3Goods and services produced by the government
4Net income from abroad

Which of the above items are included in GNP?

Indian EconomyGrowth and sectors

A1, 2 and 3 only
B1, 2 and 4 only
C3 and 4 only
D1, 2, 3 and 4

Explanation

GNP equals GDP plus net factor income from abroad, and by the expenditure approach GDP = private consumption (1) + gross private domestic investment (2) + government purchases of goods and services (3). Adding net income from abroad (4) converts GDP into GNP, so all four items are included. Hence (D).