What does Gross National Product (GNP) focus on?

Gross National Product (GNP) specifically measures the total economic output produced by a country's citizens, regardless of whether that production occurs within the nation's borders or abroad. This means GNP takes into account the income generated by residents from investments outside the country, as well as the value of goods and services produced domestically by citizens.

Focusing on the productive output of a country's citizens provides insight into the overall economic well-being and productive capacity of that nation's populace. It's a reflection of the economic activities that contribute to the wealth of a nation, illustrating not just what's happening within the geographical limits of the country but also the economic contributions made by its citizens elsewhere.

In contrast, options that suggest a focus on foreign entities or gross imports shift the emphasis away from the contributions of the nation's own residents, while economic growth rate reflects broader trends including investments, consumption, and external factors, which are not solely about the output from the citizens. The correct understanding of GNP is centered on the activities and contributions of the individuals that compose the citizenry, highlighting their impact on the national economy.