Which of the following would be added to U.S.national income?
A)an American consumer buying French wine
B)an American business selling aircraft to British Airways
C)a Swedish firm selling mobile phones to Americans
D)a French firm buying a Swedish cellular phone

Question

Which of the following would be added to U.S.national income?
A)an American consumer buying French wine 
B)an American business selling aircraft to British Airways 
C)a Swedish firm selling mobile phones to Americans 
D)a French firm buying a Swedish cellular phone

Quizplus · Accepted Answer

National income only includes economic activity that occurs within the country, so options A and C involve transactions that would not be added to U.S. national income. Option D doesn't involve any economic activity within the U.S. either. Option B, however, represents an American business selling a good to a foreign entity, which counts as an export and would be added to U.S. national income.

Which of the Following Would Be Added to U