Answer to Question #205365 in Economics for Reggi

Question

Which of the following statement(s) is/are INCORRECT concerning the GNI?

[1] The GNI is equal to the GDP plus primary income to the rest of the world minus

primary income from the rest of the world.

[2] The GNI is used to measure the nation’s income over a period of time.

[3] The GNI is equal to the GDP plus primary income from the rest of the world minus

primary income to the rest of the world.

[4] To evaluate the living standards of citizens in a country, policymakers usually use the

GNI.

Answer 1

The gross national income (GNI), previously known as gross national product (GNP), is the total domestic and foreign output claimed by residents of a country, consisting of Gross Domestic Product (GDP), plus factor incomes earned by foreign residents, minus income earned in the domestic economy by nonresidents.

So, the incorrect statement is [1].