What is the difference between GDP and GNP?
What will be an ideal response?
GDP is the market value of all final goods and services produced within a nation's borders even if foreign-owned factors of production are used in the process. GNP is the market value of all final goods and services produced using domestic-owned factors of production, regardless of where these factors are located. Some of the output from a General Motors plant located in Mexico would be included in the U.S. GNP, but it would also be included in the Mexican GDP.
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Virtually all firms expend resources to do precise calculations of marginal cost and marginal revenue for decision making.
Answer the following statement true (T) or false (F)
Any point within the utility possibility frontier is:
a. unachievable b. efficient c. achievable but inefficient d. unachievable but efficient
During George W. Bush's presidency
A. the job market was quite robust. B. The United States' federal budget deficit hit a record high. C. the federal budget surpluses in the last years of the Clinton presidency continued. D. we experienced a very high inflation rate.
What do tests of the gravity equation for trade between Canadian provinces and American states indicate?
a. Individual state and individual provincial GDPs are negatively related to the amount of trade between individual states and provinces. b. Individual state and individual provincial GDPs are positively related to the amount of trade between individual states and provinces. c. Individual state and individual provincial GDPs are not at all related to the amount of trade between individual states and provinces. d. The gravity equation does not apply to U.S.Canadian trade.