Alexandria, a British citizen, owns and manages a fish and chips shop in Washington, D.C. She buys fresh food produced by U.S. workers, pays utilities to a U.S. company, and employs only U.S. citizens. What part, if any, of the restaurant's production is included in U.S. GDP? What part, if any, of the restaurant's production is included in U.S. GNP?
All of the output is included in U.S. GDP. The value of the output produced by American citizens is included in U.S. GNP. The value added by Alexandria's labor and capital is excluded from U.S. GNP.
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Refer to Figure 4.1. Theodore's available strategies include
A) top and bottom. B) up and down. C) left and right. D) all of the above
In a circular-flow diagram, total income and total expenditures in an economy are:
A) equal because firms are ultimately owned by households. B) equal only if there is no saving. C) equal because every transaction has a buyer and a seller. D) always equal because some people's income is not for production.
The three problems with using the consumer price index as a measure of the cost of living are
a. widely acknowledged and easy to solve. b. widely acknowledged and difficult to solve. c. nearly unacknowledged and easy to solve. d. nearly unacknowledged and difficult to solve.
What did the Federalists believe about banking?
(A) They believed that state governments should own and run the nation's banks. (B) They believed that the banking system already in existence was sufficient. (C) They believed that a centralized banking system was necessary. (D) They believed an international banking system would be best.