The cars produced by Toyota in its factory in Kentucky ________ in U.S.GDP and ________ in U.S.GNP.

Question

Quizplus · Accepted Answer

The cars produced by Toyota in its factory in Kentucky are included in the calculation of U.S. GDP because they are produced within the borders of the United States. However, they would not be included in the calculation of U.S. GNP because Toyota is a Japanese company and the income generated from the production of the cars would flow back to Japan, not the United States. Therefore, the cars are counted in U.S. GDP but not in U.S. GNP.

The Cars Produced by Toyota in Its Factory in Kentucky