POB FORM 5 NATIONAL INCOME

If Nike, an American corporation, produces sneakers in Thailand this would

• add to neither U.S. GDP nor Thailand's GDP.

• add to Thailand's GDP but not to U.S. GDP.

• count as part of U.S. GDP since it is a U.S. corporation.

• count for both Thailand's GDP and U.S. GDP.

Gross domestic product is a measure of the total value of all

• consumer income in an economy over a period of time.

• capital accumulation in an economy over a period of time.

• sales in an economy over a period of time.

• final goods and services produced in an economy over a period of one year

Gross national product (GNP) differs from gross domestic product (GDP) in that GNP:

• refers to production by the citizens of a country.

  
  

• refers to production within the economy.

• refers to production of goods only.

• refers to production of services only

Gross National Product also measures the activities of the black market.

• TRUE

• FALSE

Katherine does baby sitting in New York. She sends money back home to her husband. Her income will count as GDP.

• TRUE

• FALSE

Explain National Income

National Income is measured via the profits method.

• TRUE

• FALSE