Which of the following would be counted in U. S. GDP?

a. The salary of an American professor teaching in England

b. The value of a used U. S.-produced car purchased in the U. S.

c. The value of a new U. S.-produced car purchased by a French citizen

d. The value of a new French-produced car purchased by a U. S. citizen within in the U. S.

e. The value of a General Electric corporate bond bought by a Japanese citizen

Question

Business

Broderick Graham

29 January, 17:46

Which of the following would be counted in U. S. GDP?

a. The salary of an American professor teaching in England

b. The value of a used U. S.-produced car purchased in the U. S.

c. The value of a new U. S.-produced car purchased by a French citizen

d. The value of a new French-produced car purchased by a U. S. citizen within in the U. S.

e. The value of a General Electric corporate bond bought by a Japanese citizen

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Answers (1)

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Turner Scott · Answer 1

c. The value of a new U. S.-produced car purchased by a French citizen

Explanation:

GDP stands for Gross domestic product. It is a measure of the aggregate value of all the finished goods and services produced within the boundaries of a country in a given period. GDP considers products made by both the locals and foreigners.

A new car produced in the US will be included in the GDP for the US the year in which it was manufactured. GDP focuses on the value of goods produced but not where they were consumed. The value of goods and services produced by Americans in foreign countries does not constitute GDP for the US. Products manufactured outside the US, but are being consumed within the US are not part of the US's GDP.