When Measuring GNI in an Open Economy, One Must Recognize

question 43

Multiple Choice

When measuring GNI in an open economy, one must recognize not only net transfer payments to factors of production but also:

• A) net profit paid to corporations.
• B) the increase in asset prices as a result of foreign investment.
• C) income earned in the underground economy.
• D) net unilateral transfers, which include official aid and private charitable gifts.

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Definitions:

Nature and Culture

Refer to the interconnected relationship and distinctions between the natural world and human-made systems of meaning, norms, and practices.

Equality of Respect

The principle that all individuals deserve the same level of respect and consideration, regardless of their characteristics or status.

Presumption

An assumption that is taken for granted, often without conclusive evidence.

Jean-Jacques Rousseau

A Genevan philosopher, writer, and composer of the 18th century, known for his influential thoughts on education and social contract theory.