Advanced Placement (AP) Human Geography Practice Exam

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Prepare efficiently for the AP Human Geography Exam with quizzes and interactive questions. Gain insights into key concepts with detailed explanations. Enhance your readiness and boost your score!

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How is gross national product (GNP) calculated?

GDP plus income earned from abroad
The total value of domestic goods only
GNP does not include income from abroad
GDP including taxes and subsidies

The correct answer is: GDP plus income earned from abroad

Gross National Product (GNP) is calculated as the total market value of all final goods and services produced by the residents of a country in a given time period, plus the income earned by its residents from investments abroad, minus the income earned by foreign residents from domestic investments. This means that GNP accounts for both the domestic production and the net income from abroad, effectively distinguishing it from other measures like Gross Domestic Product (GDP), which only considers production within the nation’s borders regardless of who generates the income. By including income earned from abroad, GNP provides a broader perspective on the economic performance and wealth of a nation's residents, reflecting their overall economic engagement in the global market. This distinguishes GNP from merely tallying the domestic output, as it recognizes the importance of international investments and returns.