The correct answer is b and c. • Gross national product (GNP) • GNP ≡ GDP + Factor income earned by the domestic factors of production employed in the rest of the world – Factor income earned by the factors of production of the rest of the world employed in the domestic economy • Gross national product (GNP) is an estimate of the total value of all the final products and services turned out in a given period by the means of production owned by a country's residents. Hence, statement a is correct. • It is commonly calculated by taking the sum of personal consumption expenditures, private domestic investment, government expenditure, net exports, and any income earned by residents from overseas investments, minus income earned within the domestic economy by foreign residents. Hence, statement b is incorrect. • GNP is related to another important economic measure called gross domestic product (GDP), which takes into account all output produced within a country's borders regardless of who owns the means of production. • Per capita income • Per capita income is a measure of the amount of money earned per person in a nation or geographic region. • Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. But Per Capita Income is not equal to Marginal Income as given in statement 3. Hence, statement c is incorrect. • Per capita income for a nation is calculated by dividing the country's national income by its population.