Profits earned in the United States by foreign-owned companies are included in
A) the U.S. GDP but not GNP.
B) neither the U.S. GDP nor GNP.
C) the U.S. GNP but not GDP.
D) both the U.S. GDP and GNP.

Question

Quizplus · Accepted Answer

Profits earned in the United States by foreign-owned companies are included in the U.S. GDP because GDP measures the total value of all goods and services produced within a country's borders, regardless of the nationality of the company owners. These profits are not included in the U.S. GNP, as GNP measures the total value of all goods and services produced by the residents of a country, regardless of where they are produced.

Profits Earned in the United States by Foreign-Owned Companies Are