In terms of economic measures, what does GNP include that GDP does not?

Gross National Product (GNP) measures the total economic output produced by the residents of a country, regardless of where that production occurs. This means that GNP includes the production of U.S. expatriates overseas, as it accounts for all economic activities by citizens of the nation, including those who are working and producing goods or services outside their home country. This distinguishes GNP from Gross Domestic Product (GDP), which focuses solely on the total economic output that occurs within the country’s borders, regardless of who is producing it.

In contrast, GDP would include production by foreign companies operating within the U.S. but would not account for U.S. citizens working abroad. Therefore, the key difference is that GNP takes into account the contributions of U.S. citizens and businesses, no matter their location, while GDP is restricted to the geographical boundaries of the country.

Transfer payments, such as social security or unemployment benefits, are not included in either GNP or GDP as they do not reflect the production of goods or services. Income generated from domestic production is captured in both measures, making it irrelevant to distinguishing between GNP and GDP.