A car produced by the American company GM in a plant located in Canada would be included in:
A) U.S.GDP,but not U.S.GNP.
B) U.S.GNP,but not U.S.GDP.
C) both U.S.GDP and U.S.GNP.
D) neither U.S.GDP nor U.S.GNP.

Question

Quizplus · Accepted Answer

Gross National Product (GNP) measures the value of goods and services produced by the residents of a country, regardless of where they are located. Since the car is produced by an American company (GM), it would be included in the U.S. GNP. Gross Domestic Product (GDP), on the other hand, measures the value of goods and services produced within a country's borders, regardless of who produces them. Since the car is produced in Canada, it would not be included in the U.S. GDP.

A Car Produced by the American Company GM in a Plant