An Example of How GNP Accounts for Services Provided by Foreign-Owned

question 23

Multiple Choice

An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is

• A) earnings of a Spanish factory with British owners counts only in Spain's GDP.
• B) earnings of a Spanish factory with British owners counts only in Britain's GNP.
• C) earnings of a Spanish factory counts in Spain's GNP but are part of Britain's GDP.
• D) earnings of a Spanish factory counts in Spain's GDP but are part of Britain's GNP.
• E) earnings of a Spanish factory counts in Spain's GNP but not in Britain's GDP or GNP.

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Definitions:

Tuskegee

A historically black university located in Tuskegee, Alabama, known for its role in African American education and the famous Tuskegee Airmen during World War II.

Aviation

The design, development, production, operation, and use of aircraft, especially heavier-than-air aircraft, encompassing both commercial and military aspects.

Spingarn Medal

An award given annually by the NAACP since 1914 to African Americans of distinguished achievement.

NAACP

The National Association for the Advancement of Colored People, a civil rights organization established in 1909 to combat prejudice, lynching, and to promote racial justice and equality.