Which of the following is not counted in the GNP of the United States?
A) The wage of a U.S. citizen who works in a foreign country for a foreign firm.
B) The interest earned by a U.S. bank on loans to a business firm located in Brazil.
C) The profit earned by a restaurant located in the United States but owned by a Mexican company.
D) The value of services that are produced by state and local governments in the United States.

Question

Quizplus · Accepted Answer

The Gross National Product (GNP) of the United States includes all economic output produced by U.S. residents, both domestically and abroad, but does not include the output produced within the United States by foreign residents or entities. Therefore, the profit earned by a restaurant located in the United States but owned by a Mexican company is not counted in the U.S. GNP, as it is considered part of the economic output of foreign residents.

Which of the Following Is Not Counted in the GNP