ECONOMICS
ECONOMIC DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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GNP, GDP
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GDP, GNP
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Either A or B
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None of the above
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Detailed explanation-1: -Toyota Motor Manufacturing, Kentucky, Inc. (TMMK) is Toyota’s largest vehicle manufacturing plant in the world, capable of producing 550, 000 vehicles and more than 600, 000 engines annually.
Detailed explanation-2: -Gross domestic product (GDP) is the value of the finished domestic goods and services produced within a nation’s borders. On the other hand, gross national product (GNP) is the value of all finished goods and services owned by a country’s citizens, whether or not those goods are produced in that country.
Detailed explanation-3: -GNP is commonly calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports, and any income earned by residents from overseas investments, then subtracting income earned by foreign residents.
Detailed explanation-4: -GDP = consumption + investment + (government spending) + (exports − imports). GNP = GDP + NR (Net income inflow from assets abroad or Net Income Receipts)-NP (Net payment outflow to foreign assets).