Katherine, a French citizen, works only in the United States. The value of the output she produces is

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) includes the total value of all goods and services produced within a country's borders, regardless of the nationality of the person producing them. Since Katherine works in the United States, her output is included in U.S. GDP. GNP (Gross National Product), on the other hand, includes the total value of all goods and services produced by the residents of a country, regardless of where they are producing these goods and services. Since Katherine is a French citizen, her output is not included in U.S. GNP but would be considered in France's GNP.

Katherine, a French Citizen, Works Only in the United States