If the Gross National Product (GNP) of Nigeria is ₦50,000 billion and net income from abroad is ₦2,000 billion, what is the Gross Domestic Product (GDP)?
A₦52,000 billion
B₦48,000 billionCORRECT
C₦50,000 billion
D₦46,000 billion
GCEEconomicsNational Income2020
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Why the answer is B, and why the others tempt you.
The relationship between GDP and GNP is: GNP = GDP + Net income from abroad. Therefore, GDP = GNP − Net income from abroad = ₦50,000 billion − ₦2,000 billion = ₦48,000 billion. Net income from abroad represents earnings by Nigerians abroad minus earnings by foreigners in Nigeria.
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