Which of the following is NOT counted in the GNP of the United States?
A)The wage of a U.S.citizen who works in a foreign country for a foreign firm.
B)The interest earned by a U.S.bank on loans to a business firm located in Brazil.
C)The profit earned by a restaurant located in the United States but owned by a Mexican company.
D)The value of services that are produced by state and local governments in the United States.

Question

Quizplus · Accepted Answer

GNP includes the income earned by U.S. nationals and businesses abroad but excludes the income earned by foreign nationals and businesses within the U.S. Therefore, the profit earned by a restaurant in the U.S. owned by a Mexican company is not included in the U.S. GNP.

Which of the Following Is NOT Counted in the GNP