Identify which of the following statements is incorrect with reference to an economy?

Option 1 -> GDP and GNP are both positive values representing economic output. Their sum cannot be zero.

Option 2 -> Possible when Net Factor Income from Abroad (NFIA) is negative, meaning more income goes to foreigners than comes from abroad.

Option 3 -> Possible when NFIA equals zero, meaning income inflows and outflows are balanced.

Option 4 -> Possible when NFIA is positive, meaning residents earn more income abroad than foreigners earn domestically.

Hence, Option 1: Sum of Gross Domestic Product (GDP) and Gross National Product (GNP) is always equal to zero -> This statement is mathematically and economically impossible. Both GDP and GNP represent total economic output and are always positive values in any functioning economy. Their sum would be a large positive number, not zero. The relationship between them is: GNP = GDP + Net Factor Income from Abroad. Depending on whether NFIA is positive, negative, or zero, GNP can be greater than, less than, or equal to GDP, but their sum is never zero -> correct