Which of the Following Is Counted in the GNP of the United

question 33

Multiple Choice

Which of the following is counted in the GNP of the United States?

• A) the wage of a foreign citizen who works in the United States for a U.S. firm
• B) the interest earned by a Brazilian bank on loans to a business firm located in the United States
• C) the profit earned by a restaurant located in the United States but owned by a Guatemalan company
• D) the value of services that are produced by state and local governments in the United States

---

Definitions:

Self-Employment Income

Self-Employment Income is money earned from carrying out business activities or providing services as an independent contractor, rather than as an employee.

Advance Rental Payments

Prepayments of rent, often required by landlords, accounted for before the period of use or occupancy.

Security Deposits

Funds held by a landlord as a financial protection against damage to property or unpaid rent by a tenant, to be returned at the end of a lease term under certain conditions.

Passive Activities

Economic activities in which the individual does not materially participate, often resulting in income or losses for tax purposes.