The Central Bank of Barbados wants to measure the income earned by Barbadian nationals, including those working abroad, while excluding income earned by foreign nationals within Barbados. Which measure should be used?

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Question

The Central Bank of Barbados wants to measure the income earned by Barbadian nationals, including those working abroad, while excluding income earned by foreign nationals within Barbados. Which measure should be used?

Accepted Answer

Gross National Product — Award 1 mark for identifying GNP as the measure that includes income earned by nationals abroad (net factor income from abroad) while excluding income earned by foreigners domestically. A is incorrect — GDP measures production within borders regardless of nationality. C is incorrect — NDP is GDP minus depreciation. D is incorrect — this refers to income after taxes and transfers.

Answer

Gross National Product

Answer

Gross Domestic Product

Answer

Personal Disposable Income

Answer

Net Domestic Product

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