Measuring Households for GDP

CFA Level I Economics
#1

"Q. For a given economy and a given period of time, GDP measures the:

  1. aggregate income earned by all households, all companies, and the government.
  2. total income earned by all of the country’s citizens, firms, and the government.
  3. total market value produced of resalable and final goods and services.

The most appropriate description of what is measured by GDP is given by:

  1. I only.
  2. I and II.
  3. I and III.

B is incorrect because GDP is the total income earned by all households and not country citizens."

I found this confusing because what exactly is the difference between a household and citizen? Won’t total income be the same?

#2

I think the difference between the 2 is that an individual could be a citizen of a country without residing and working in that country and therefore not contributing to their countries GDP calculation. Conversely a household by definition will be resident in the said country.

#3

Thanks. I guess I was assuming that citizens are living in the country where they hold citizenship, so thanks for pointing out my not-necessarily-true assumption.