True or False: The definition of GDP includes income generated by a nation's residents outside its borders.

The statement is false because Gross Domestic Product (GDP) measures the total value of all goods and services produced within a country's borders over a specific time period. It includes the production output of factories, services rendered, and any other economic activities occurring in that nation, regardless of whether the businesses are owned by domestic or foreign entities. However, GDP does not account for income that residents or businesses earn from investments or operations outside their country's borders.

In contrast, Gross National Product (GNP) and Gross National Income (GNI) include income generated by a nation's residents regardless of their location, which distinguishes them from GDP. Therefore, recognizing that GDP focuses solely on domestic production makes the statement about it including foreign-generated income incorrect.