JNU SSS 2014 Question 18: National income accounting
Consider a country A whose citizens working abroad remit to the country in a particular year an amount in local currency units (LCUs) that is 250 LCUs more than what foreigners working in A are remitting to their parent countries. Foreign firms operating in A repatriate profits to their home countries that exceed the profits repatriated to A by its firms operating abroad by 750 LCUs. If GDP in the relevant year is 50,000 LCUs and there are no other cross-border flows of income, the country’s GNP would be
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Consider a country A whose citizens working abroad remit to the country in a particular year an amount in local currency units (LCUs) that is 250 LCUs more than what foreigners working in A are remitting to their parent countries. Foreign firms operating in A repatriate profits to their home countries that exceed the profits repatriated to A by its firms operating abroad by 750 LCUs. If GDP in the relevant year is 50,000 LCUs and there are no other cross-border flows of income, the country’s GNP would be (A) 50,500 LCUs (B) 49,500 LCUs (C) 49,750 LCUs (D) 50,750 LCUs
National income accounting has come up 132 times in 6 exams since 2010.
What this question tests
This question is on GDP, GNP, NDP and national income, part of National income accounting in Macroeconomics.
Converting between GDP, GNP, net product and national income, and between market prices and factor cost.
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