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

Quizplus · Accepted Answer

National income includes all income earned by U.S. residents and businesses, regardless of whether the transaction takes place domestically or internationally. Therefore, the sale of aircraft by an American business to a foreign company would be added to national income. The other options involve transactions where either an American consumer is buying a foreign product or a foreign firm is buying a foreign product, so they would not be added to U.S. national income.

Which of the Following Would Be Added to U