State whether the following statements are true or false. 3) GDP includes net income from abroad.

State whether the following statements are true or false.

3) GDP includes net income from abroad.

Answer: 

GDP includes net income from abroad. - False

Explanation:

The above statement is incorrect. GDP is the value of all the goods and services produced during an accounting year within the domestic country. As GDP is limited to the domestic territory, it excludes the net factor income from abroad.

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