With Regard to GDP and GNP, Which of the Following

question 204

Multiple Choice

With regard to GDP and GNP, which of the following is correct?

• A) The profits earned by a Canadian company abroad are included in GDP, but not in GNP.
• B) Profits earned by foreign firms in Canada are included in GNP.
• C) GDP increased as a result of the BP oil spill in the Gulf of Mexico in 2010.
• D) GDP has been increasing for many years.
• E) GNP and GDP measure essentially the same thing.

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Definitions:

Steady Income

A consistent flow of money earned or received over time, usually through employment, investments, or other reliable sources.

Mortgage Loan

A loan secured by collateral of some specified real estate property which the borrower is obliged to pay back with a predetermined set of payments.

Discharge in Bankruptcy

The legal process that releases a debtor from most of their debts, providing a fresh financial start, as determined under bankruptcy law.

Down Payment

An initial, upfront payment made on a purchase, typically significant in value, with the balance to be paid later.