ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The GNP of the U.S.
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The GDP of the U.S.
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The GDP of Japan
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None of the above
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Detailed explanation-1: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports. 1 That tells you what a country is good at producing. GDP is the country’s total economic output for each year.
Detailed explanation-2: -The first important distinction concerning GDP is that it includes all good and services produced in a country, regardless of where the company is headquartered. For instance, the Mercedes cars produced in the United States are counted in the United States’ GDP, even though Mercedes is a German-owned company.
Detailed explanation-3: -GDP does not, however, take the national ownership of the business that produces a good or service into consideration. So, a car produced in Kentucky counts as U.S. GDP-even if it is produced by a foreign company; but a car produced in Mexico does not count as U.S. GDP-even if it is produced by a U.S. company.
Detailed explanation-4: -Imports, by definition, are not part of gross domestic product. The BEA, however, is not able to discern the import content of goods and services produced in the United States.