Econoland and Macroland Are Neighboring Countries

question 170

Multiple Choice

Econoland and Macroland are neighboring countries. Which of these 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 Econoland
• D) the value of output produced in Econoland that remained unsold the year it was produced

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Definitions:

Labor Market

The supply and demand for labor, in which employees provide the supply and employers provide the demand.

Employment Opportunities

Job openings available in the economy for individuals seeking employment, reflecting the demand for labor and the health of the economic environment.

Taft-Hartley Act

A U.S. law enacted in 1947 that restricts the activities and power of labor unions.

Labor Relations (Wagner) Act

A foundational statute of US labor law which guarantees the rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.