Econoland and Macroland Are Neighboring Countries

question 249

Multiple Choice

Econoland and Macroland are neighboring countries. Which of the following would be included in the GNP of Econoland but not in Econoland's GDP?

• A) the value of the output of a factory in Econoland that is owned by a company whose headquarters are located in Macroland
• B) the value of the output of a factory in Macroland that is owned by a company whose headquarters are located in Econoland
• C) the value of output sold in Macroland that was produced by a farmer who owns land in Econland
• D) the value of output produced in Econoland that remained unsold the year it was produced

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Definitions:

Robert Oppenheimer

A physicist known as the "father of the atomic bomb" for his role in the Manhattan Project, the World War II project that developed the first nuclear weapons.

Leslie Groves

A U.S. Army Corps of Engineers officer and the director of the Manhattan Project, the project during World War II that developed the first nuclear weapons.

Atom Bomb

A powerful weapon of mass destruction that releases energy through nuclear reactions, causing widespread destruction.

Hiroshima, Japan

A city in Japan that was the target of the first atomic bomb used in warfare, dropped by the United States on August 6, 1945.