Which of the following is not an issue when comparing the GNP of developed and developing nations?

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GNP tends to be underestimated for developed countries because some items counted in their national income are intermediate products.In poor countries, the economic value of a housewife’s work in a peasant family may not be reflected in the GNP.GNP is undervalued for developing countries since many of their labor-intensive goods do not affect exchange rates as they are not traded internationally.GNP is exaggerated in countries where the foreign exchange rate is set below the market equilibrium price.None of the above.

Explanation

Option A is not a problem because GNP is usually understated for developed countries due to the inclusion of intermediate goods in their national income calculations. In contrast, options B, C, and D highlight common issues affecting GNP comparisons between developed and developing countries, such as unmeasured household work, undervaluation of labor-intensive goods, and distortions from exchange rate mispricing.