Which economic measure considers both domestic production and income from foreign sources?

The correct answer is GNI, or Gross National Income, because it incorporates the total income generated by a country's residents, including both domestic production and income received from investments abroad. GNI measures the value of goods and services produced within a country (domestic production) plus any income earned by residents from investments in other countries, minus any income earned by foreign residents from domestic investments.

This makes GNI particularly relevant in a global context, as it reflects the economic activities of a nation's residents regardless of the geographical location of those activities. In contrast, GDP, or Gross Domestic Product, focuses solely on the value of goods and services produced within a country’s borders, without accounting for income from foreign sources. Therefore, GNI provides a more comprehensive view of a nation's economic performance, especially for countries with significant foreign investments or income streams.

PPP, or Purchasing Power Parity, is a method used to measure economic output and living standards, taking into account the relative cost of living and inflation rates, but it does not directly measure income sources. NIC isn't a standard economic measure but often refers to Newly Industrialized Countries, which does not pertain to the question of income measurement.