Suppose Toyota builds a new plant in the north of England. Which of the following is then true?
Correct answer A. Once the plant starts producing cars, UK GDP will rise more than UK GNP
Explanation
GDP counts all output produced inside the UK, while GNP counts income of UK residents. Profits from the plant flow to Japanese owners, so UK GDP rises by more than UK GNP.
Answer checked How we write and check questions
Discussion