Concept:GNP measures the total income earned by citizens, both at home and abroad.
It is obtained by adjusting GDP for net factor income from abroad.
Explanation:Start with the given GDP of N60,000.
Net factor income from abroad = factor income from abroad − factor payments to foreigners.
Net factor income=N15,000−N10,000=N5,000.Add this net factor income to GDP to get GNP.
GNP=GDP+Net factor income=N60,000+N5,000=N65,000.Capital consumption allowance, N20,000, is depreciation.
It is not added again because GDP is already a gross figure that includes depreciation.
Answer:GNP = N65,000.
This value is not listed among the options, so the options contain an error.