A Resident of San Diego, California, Owns and Operates a Garage

question 144

Multiple Choice

A resident of San Diego, California, owns and operates a garage across the U.S.-Mexican border in Tijuana, Mexico. The value of the garage services produced at the shop would be counted in _____.

• A) U.S. GNP
• B) Mexico's GNP
• C) U.S. GDP
• D) U.S.'s net exports

Understand the role of transfer payments and government spending in national economic accounts.

Distinguish between intermediate goods and final goods in the context of GDP calculation.

Appreciate the effect of inflation and deflation on real GDP and nominal GDP.

Interpret economic indicators related to GDP, including per capita real GDP and the GPI.

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Definitions:

UPA

Stands for Uniform Partnership Act, which is a set of laws adopted by various states in the United States that governs partnerships.

Article of Partnership

A written agreement that outlines the terms, conditions, and responsibilities of each partner in a partnership.

Partnership Contract

A legal agreement between two or more parties who wish to manage and operate a business together in order to share its profits.

Public Corporations

Companies owned by the government that operate with the aim of serving the public interest and often have publicly traded shares.