Rebecca,a U.S.citizen,imported a watch from Switzerland.This transaction led to a(n)________.
A) increase in the U.S. GDP
B) increase in the U.S. GNP
C) increase in the GDP of Switzerland
D) decrease in the GDP of Switzerland

Question

Quizplus · Accepted Answer

The transaction would increase the GDP of Switzerland because the watch was produced there, contributing to Switzerland's economic output. GDP measures the total value of all goods and services produced within a country's borders, regardless of who owns the production assets.