Question

Gross National Product (GNP) is the GDP of a country added with its ‘income from abroad’. Which of the following is/are part of income from abroad in India?

1. Private Remittances

2. Participation in international games by Indian Sports persons

3. Interest on External loans

Select the correct answer using the codes given below:

• A. 1 only
• B. 1 and 2 only
• C. 1 and 3 only
• D. 1, 2 and 3

Answer 1

Answer:

C. 1 and 3 only

Gross National Product (GNP) is the GDP of a country added with its ‘income from abroad’. Here, the trans-boundary economic activities of an economy are also taken into account. The items which are counted in the segment ‘Income from Abroad’ is: · Private Remittances · Interest on external loans · External grants