Question

How does gross domestic product (GDP) differ from gross national income (GNI)? A. GDP counts the number of citizens in a country, while GNI counts the number of citizens abroad. B. GDP measures how happy people are in a country, while GNI measures how happy they are internationally. C. GDP is used by NASA to measure eroding coastlines, while GNI is used by the FBI to monitor criminal activity across borders. D. GDP measures the money that a country makes in its own land, while GNI measures the money it makes in other countries and at home.

Answer 1

The correct answer is D.

The GDP is the total amount of goods and services produced in a country during a specific period of time, for example, a year. It is measured in monetary terms.

The difference between GDP and GNI is that the first measures what is produced inside the country (independently of who produces it), while the second measures what is produced by 'nationals' (agents that have that country's nationality) either inside its borders or abroad.

Answer 2

GDP refers to a country's earnings within its holdings, while GNI deals with total income from all areas. So the correct answer is D.