Concept:GDP measures value of goods/services produced within a country’s borders, while GNP includes income earned by residents anywhere in the world.
Explanation:The key difference lies in net foreign income from abroad.
GDP counts all production inside the nation, whether by citizens or foreigners.
GNP adds income earned by residents abroad and subtracts income earned by foreigners within the country.
This net income (earnings from abroad minus payments to foreigners) is the only factor separating GDP from GNP.
Capital gains, transfer payments, and capital consumption allowance are not the distinguishing factor.
Thus, net foreign income from abroad is the correct answer.
Answer:C. Net foreign income from abroad