1. What do we add to GDP to reach GNP? a. Net income earned abroad by U.S. households b. Personal income c. Depreciation d. Net exports 2. If no foreign companies produce in a country, but many of the...

1. What do we add to GDP to reach GNP?

a. Net income earned abroad by U.S. households

b. Personal income c. Depreciation

d. Net exports

2. If no foreign companies produce in a country, but many of the country’s companies produce abroad, then it is probably true that

a. the country’s GNP exceeds its GDP.

b. the country’s GDP exceeds its GNP.

c. the country’s GNP and GDP are equal.

d. the country’s GDP equals its domestic income.

3. Personal income and personal disposable income refer to payments ultimately flowing to __________ (households/firms).

4. The fact that the Nigerian oil industry is managed by large foreign corporations tends to make Nigeria’s __________ (GDP/GNP) exceed its __________ (GDP/GNP).