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

Question

Quizplus · Accepted Answer

Profits earned in a foreign country by U.S.-owned companies are included in the United States GNP but not GDP, as GNP takes into account the income earned by U.S. citizens and businesses regardless of their location. GDP measures the value of goods and services produced within a country's borders, regardless of who owns the productive assets.

Profits Earned in a Foreign Country by U