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  9. Q88

APSC CCE 2022 · Question 88 of 176

Which of the statements given below is/are correct? (i) GNP is always higher than GDP. (ii) If GDP is greater than GNP, then net factor income earned abroad is negative. Select the correct answer using the codes given below.

Economy

  1. AOnly (i)
  2. BOnly (ii)Correct
  3. CBoth (i) and (ii)
  4. DNeither (i) nor (ii)

Answer: B. Only (ii)

Explanation

GNP equals GDP plus net factor income from abroad, so GNP is not always higher than GDP; when GDP exceeds GNP, net factor income earned abroad is negative.

Source: APSC CCE Prelims 2022 GS Paper-I, official Series-D key

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