SOLVED

12.4Â Â Other Measures of Total Production and Total Income 1) Gross national product, GNP, of the United States is the market value of all final goods and services A) produced within the United States. B) consumed within the United States. C) produced by citizens of the United States anywhere in the world. D) consumed by citizens of the United States anywhere in the world. 2) The output of Mexican citizens who work in Texas would be included in the A) gross domestic product of Mexico. B) gross national product of Mexico. C) gross national product of the United States. D) net national product of the United States. 3) The output of U.S. citizens who work in Canada would be included in the A) gross domestic product of Canada. B) gross national product of Canada. C) gross domestic product of the United States. D) gross national product of Canada and the gross national product of the United States. 4) If an American firm opens a production facility in India, the total value of the production will be included in the A) gross domestic product of the United States. B) national income of the United States. C) gross domestic product of India. D) national income of India. 5) Which of the following is included in both the U.S. GDP and U.S. GNP? A) the value of all cars produced by General Motors in the United States B) the value of all cars produced by Ford in Mexico C) the value of all cars produced by Toyota in the United States D) the value of all cars produced by Nissan in Japan and the United States 6) A country in which a significant fraction of domestic production takes place in foreign-owned factories and facilities is most likely a country where A) GNP is much larger than GDP. B) GDP is much larger than GNP. C) GDP is equal to GNP. D) GDP is not comparable to GDP. 7) The value of what a U.S.-owned McDonald’s produces in South Korea is included in the U.S. ________ and the South Korean ________. A) GDP; GDP B) GNP; GDP C) GDP; GNP D) GNP; GNP 8) National income equals gross national product minus A) imports. B) depreciation. C) inventories. D) changes in inventories. 9) National income equals gross domestic product A) plus sales taxes. B) plus government transfer payments. C) minus the consumption of fixed capital. D) minus government transfer payments. 10) Depreciation is A) the value of worn-out equipment, machinery, and buildings. B) the value of the decrease in business inventory stocks. C) the value of the addition to the capital stock. D) the decline in the value of the stock market, net of dividends.