A U.S.-owned car factory in Mexico produces $5 million of cars. $2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S. In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S. managers working in Mexico. How much did this production contribute to U.S. GDP?
a. $0
b. $1 million
c. $2 million
d. None of the above are correct
a
You might also like to view...
An increase in people's expected future disposable income ________ saving supply, and the supply of loanable funds curve ________
A) decreases; shifts rightward B) does not change; does not shift C) increases; shifts rightward D) increases; shifts leftward E) decreases; shifts leftward
The prisoners' dilemma game
A) shows that prisoners are better off if they cooperate. B) shows it is easy to cooperate. C) has an equilibrium in which both prisoners are made as well off as possible. D) would have the same outcome even if the prisoners can communicate and cooperate. E) has an equilibrium in which one prisoner is made as well off as possible and the other prisoner is made as worse off as possible.
The equilibrium effects of a prospective future increase in total factor productivity include
A) an increase in the real wage and an increase in the real interest rate. B) an increase in the real wage and a decrease in the real interest rate. C) a decrease in the real wage and an increase in the real interest rate. D) a decrease in the real wage and a decrease in the real interest rate.
If a change in the price of a good results in no change in total revenue, then
a. the demand for the good must be elastic. b. the demand for the good must be inelastic. c. the demand for the good must be unit elastic. d. buyers must not respond very much to a change in price.