Suppose US

question 27

Multiple Choice

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana. Future production from such an investment would

• A)increase Ghanaian GDP more than it would increase Ghanaian GNP.
• B)increase Ghanaian GNP more than it would increase Ghanaian GDP.
• C)not affect Ghanaian GNP, but would increase Ghanaian GDP.
• D)have no affect on either Ghanaian GDP or GNP.

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Definitions:

Fried Twinkies

A deep-fried snack made from an American Twinkie cake, often found at fairs and festivals as an example of indulgent carnival food.

Tax Rate

The percentage at which an individual or corporation is taxed.

Incidence

Of a tax, a measure of who really pays a tax.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved.