The Output Produced by Domestically Owned Firms in Foreign Countries

question 72

True/False

The output produced by domestically owned firms in foreign countries is included in the U.S.GDP but not in the U.S.GNP.

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Definitions:

Inventory

Goods and materials held by a business for the purpose of sale or production.

Trade or Business

Trade or Business refers to any activity conducted for profit or livelihood, including goods and services production, buying, selling, or providing services.

Ordinary Loss

A loss incurred in the regular operation of a business or the sale of assets used in the business that can be fully deducted in the year it occurs.

Capital Loss

The loss incurred when a capital asset is sold for less than its purchase price.