Which of the Following Transactions Would Be Included in U

question 192

Multiple Choice

Which of the following transactions would be included in U.S.GDP but not in GNP?

• A)An American tourist spends money in Mexico City.
• B)The U.S.government hires an American economist to evaluate United States/Mexico trade policy.
• C)A car is produced in Detroit and exported to Mexico.
• D)A salary is paid to a Canadian engineer employed in the California computer industry.

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Definitions:

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Bridge Financing

Short-term financing used until a person or company secures permanent financing or removes an existing obligation.

Bankruptcy

A legal process through which individuals or businesses unable to meet their financial obligations can seek relief from some or all of their debts.

Operating Expenses

The ongoing costs for running a product, business, or system, excluding the costs associated with the production of goods or services.