The value of gross domestic product (GDP) differs from the value of gross national product (GNP) when:Question 46Select one:a.net exports are excluded from GDP but included in GNP.b.production in one country employs factors of production owned by residents of other countries.c.production in one country employs only factors of production owned by its residents.d.when domestic firms that produce in factories abroad are exempt from paying domestic taxes.

The value of Gross Domestic Product (GDP) differs from the value of Gross National Product (GNP) when:

b. production in one country employs factors of production owned by residents of other countries.

Explanation: GDP measures the value of all goods and services produced within a country's borders, regardless of who owns the factors of production. On the other hand, GNP measures the value of all goods and services produced by a country's residents, regardless of where they are located. Therefore, if a country's production employs factors of production owned by residents of other countries, it will be included in the GDP (because it's produced within the country's borders) but not in the GNP (because the owners of the factors of production are not residents of the country).