The value of production by a U.S.worker employed by a firm located in Canada is included in:
A) both Canada's GDP and Canada's GNP.
B) both U.S.GDP and U.S.GNP.
C) Canada's GDP and U.S.GNP.
D) U.S.GDP and Canada's GNP.

Question

Quizplus · Accepted Answer

Gross Domestic Product (GDP) measures the value of goods and services produced within a country's borders, regardless of the nationality of the workers. Gross National Product (GNP) measures the value of goods and services produced by the citizens of a country, regardless of where they are located. Therefore, the value produced by a U.S. worker in Canada is included in Canada's GDP because it's produced within Canada, and in the U.S.'s GNP because the worker is a U.S. citizen.

The Value of Production by a U