Question:

Which of the following should be included in U.S. GDP?

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A. A car manufactured in Japan and sold in the United States.

B. A car manufactured in Japan by a U.S. firm and sold in the United States.

C. A car manufactured in the United States and sold in Japan.

D. Both B and C are correct

E. A used car manufactured in the United States and sold in Japan

I chose D????

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2 ANSWERS


  1. C. is right. GDP counts domestically produced items and only C was produced in the US borders. It is an export since foreigners purchased it.

    B would be right if you were using the more dated GNP.


  2. Yep, "C" is right one. Everything produced over selected period (not before) and domestically (locally) are counted in GDP.

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