If a nation makes substantial net income payments to foreign investors, which of the following is most likely true?

Economics Mcqs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Economics Mcqseconomics-mcqs
Published
25 Feb 2025
Last updated
28 May 2026

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Explanation

When a country sends large net income payments to investors abroad, its Gross Domestic Product (GDP) will be higher than its Gross National Product (GNP). This is because GNP subtracts income paid to foreign investors, reflecting net income from abroad.

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