Scenario: John and Sue Are Married and Live in the United

question 114

Multiple Choice

Scenario: John and Sue are married and live in the United States. John is a Canadian citizen and stays home with their two children, Micah and Madison; his caretaking is valued at $20,000 per child. He also programs video games from home in the evenings for a Japanese-based online poker site for $50,000 per year. Sue works as a high-powered lawyer for Berkshire Hathaway at their London branch for the U.S. dollar equivalent of $1,00,000 per year.
-Refer to the above scenario.How much does John contribute to Japanese GDP?

• A) $0
• B) $20,000
• C) $50,000
• D) $80,000

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Definitions:

Required Return

The least percentage of profit or gain expected by an investor for taking the risk to invest in a specific asset or project.

Annual Dividend

The annual sum of dividends disbursed by a corporation to its stockholders.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividends.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuer.