A Japanese businessman opened an automobile showroom in Singapore this year.His income led to a(n)________.
A) increase in the GDP of Japan
B) decrease in the GDP of Japan
C) increase in the GDP of Singapore
D) decrease in the GDP of Singapore

Question

Quizplus · Accepted Answer

The opening of the automobile showroom in Singapore by the Japanese businessman leads to an increase in the GDP of Singapore because it generates new economic activity in Singapore. The income earned by the Japanese businessman would not have any direct impact on Japan's GDP. Therefore, options A and B can be eliminated. There is no reason to believe that the showroom would have a negative impact on Singapore's GDP, so option D can also be eliminated.

A Japanese Businessman Opened an Automobile Showroom in Singapore This