Which of the Following Would Be Included in the Gross

question 107

Multiple Choice

Which of the following would be included in the gross domestic product of Brazil?

• A) the profits earned by a U.S.-owned automobile plant in Brazil
• B) the profits earned by a Brazilian coffee company operating in the United States
• C) the profits earned by a Brazilian coffee company operating in Peru
• D) the profits earned by U.S. suppliers to Brazil operating in the United States.
• E) the profits earned by Peruvian companies operating outside Brazil

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Definitions:

Circular-flow Diagram

A visual construct of the financial ecosystem, detailing the exchange of dollars between households and firms via markets.

Legal Services

Professional services provided by lawyers or legal practitioners related to the law, including advice, representation, and the preparation of legal documents.

Revenue Earned

The total income received by a company from its business activities, such as sales of products or services, before any expenses are deducted.

Production Possibilities Frontier

A graph that illustrates the highest potential production levels for two items, considering a specific set of resources.