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AllHonours Q&A » Leaving Cert Economics

1. Nirzenra
   

   member
   Joined: Jan '70
   Posts: 35

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   "In Ireland at present, would you expect GNP to be greater then, equal to or less than GDP? Explain your answer."

   I'm so terrible on this section and if it ain't in my notes, I'm lost when it comes to these supposed "common knowledge" aspects of economics.

   At a guess, I'd say that GNP would be less than GDP because GNP in only taking into account what Irish owned factors of production are producing and the income generated by them only whereas GDP is taking into account the value of output in the economy regardless of whether it is Irish owned or foreign.

   Am I somewhere on the right track? Any help would be much appreciated! (Y)

   Posted 1 year ago #

2. Sod it
   

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   Joined: Mar '10
   Posts: 131

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   You would expect GNP to be less then GDP because net factor income from the rest of the world is negative because:
   there is more foreign companies in ireland who repatriate profits back to there home country then irish firms abroad who send profits back to ireland
   the foreign element of the national debt
   foreign nationals who send money back to their home country

   this is the proper answer and will get you full marks

   Posted 1 year ago #

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