Understanding GDP and GNP

What is the primary focus of GDP?

• Production by international organizations

• Production by foreign companies

• Production within a country's borders

• Production by citizens of a country, regardless of location

Which of the following would be included in the GDP of the United States?

• Cars produced by Honda in Japan

• Cars produced by Toyota in the US

• Cars produced by Ford in the UK

• Cars produced by BMW in Germany

What does GNP take into account that GDP does not?

• Production by a country's citizens and companies, regardless of location

• Production by foreign companies

• Production by international organizations

• Production within a country's borders

Which of the following would be included in Japan's GNP?

• Cars produced by BMW in Germany

• Cars produced by Toyota in the US

• Cars produced by Honda in Japan

• Cars produced by Ford in the UK

If an American company produces goods in another country, where is this production counted?

• In the GDP of the country where the goods are produced

• In the GNP of the country where the goods are produced

• In the GDP of the company's home country

• In the GNP of the company's home country