Which of these expressions is correct?

The correct answer is If the factor income from abroad is greater than the factor income paid abroad, then GNP would be greater than GDP.Key Points

• GNP (Gross National Product) includes the total value of goods and services produced by a country's residents, both domestically and abroad, while GDP (Gross Domestic Product) only includes the total value of goods and services produced within a country's borders.
• The factor income from abroad refers to the income earned by a country's residents from investments or work done abroad, while the factor income paid abroad refers to the income paid to foreign residents for investments or work done within the country.
• If the factor income from abroad is greater than the factor income paid abroad, it means that the country's residents are earning more from their investments or work abroad than they are paying to foreign residents for their investments or work within the country.
• This would result in a higher GNP than GDP, as the country's overall income would be higher due to the additional income earned abroad.

Additional Information

• If the factor income earned from abroad is less than the factor income paid abroad, it would result in a lower GNP than GDP, not a higher one.
• Negative net factor income from abroad would mean that the country is paying more to foreign residents for their investments or work within the country than it is earning from its residents' investments or work abroad.
• However, it does not necessarily mean that GNP would be greater than GDP as it depends on other factors such as the country's exports and imports.