What is a key characteristic of Gross National Product (GNP)?

A key characteristic of Gross National Product (GNP) is that it includes the total income generated by the residents of a country, regardless of where that income is earned, such as from investments or businesses located abroad. This means that GNP reflects the economic performance of a nation's citizens and businesses, including the income they receive from overseas operations.

The concept focuses on production generated by the nationals of a country, which is vital for understanding the overall economic health and productivity of those citizens, irrespective of whether the output is produced within the domestic borders or not. As a measure of economic output, GNP is particularly useful for evaluating how a nation's residents are performing collectively in the global economy.

Other options may suggest a narrower view of economic measurement, such as focusing solely on domestic transactions or failing to consider income derived from outside the nation's borders. Moreover, GNP does not directly measure environmental sustainability, which is a completely different aspect of economic evaluation. Therefore, the emphasis on the income generated by the residents of the country, encompassing both domestic and foreign earnings, clearly positions GNP as a comprehensive metric for assessing the economic contributions of a nation’s citizens.