Which of the following is included in both the U.S. GDP and GNP?
A) The value of all cars produced by Ford in Mexico.
B) The value of all cars produced by General Motors in the U.S.
C) The value of all cars produced by Toyota in the U.S.
D) The value of cars produced by Nissan in Japan and the U.S.

Question

Quizplus · Accepted Answer

Both U.S. GDP and GNP count the value of goods and services produced within the U.S. borders, regardless of the ownership of the company. Therefore, the value of all cars produced by General Motors in the U.S. is included in both GDP and GNP. Option A is not included in either because the production occurs in Mexico, not the U.S. Option C is only included in GDP because it is produced within the U.S., but not in GNP because the ownership of the company is foreign. Option D is not included in either because some of the production occurs outside of the U.S.

Which of the Following Is Included in Both the U