Scenario: John and Sue are married and live in the United States. John is a Canadian citizen and stays home with their two children, Micah and Madison; his caretaking is valued at $20,000 per child. He also programs video games from home in the evenings for a Japanese-based online poker site for $50,000 per year. Sue works as a high-powered lawyer for Berkshire Hathaway at their London branch for the U.S. dollar equivalent of $1,00,000 per year.
-Refer to the above scenario.How much does Sue contribute to U.S.GNP?
A) $0
B) $40,000
C) $1,000,000
D) $1,040,000

Question

Quizplus · Accepted Answer

Sue's annual income of $1,00,000 contributes to the Gross National Product (GNP) of the United States since she is a resident and working for an American company, and her income is earned in the United States. John's income, on the other hand, is not directly contributing to the U.S. GNP since he is working for a Japanese-based company and not earning income from the U.S. economy. Therefore, John's income is not considered in the calculation of U.S. GNP.

Scenario: John and Sue Are Married and Live in the United