{"id":210310,"date":"2025-04-30T07:38:30","date_gmt":"2025-04-30T07:38:30","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=210310"},"modified":"2025-04-30T07:38:31","modified_gmt":"2025-04-30T07:38:31","slug":"which-of-the-following-would-be-included-in-u-s-gnp-but-not-in-u-s-gdp","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/04\/30\/which-of-the-following-would-be-included-in-u-s-gnp-but-not-in-u-s-gdp\/","title":{"rendered":"Which of the following would be included in U.S. GNP but not in U.S. GDP"},"content":{"rendered":"\n<p>Which of the following would be included in U.S. GNP but not in U.S. GDP?<\/p>\n\n\n\n<p>A. The tips received by a waiter in New Jersey.<\/p>\n\n\n\n<p>B. Auto parts produced by a Japanese-owned firm operating in North Carolina.<\/p>\n\n\n\n<p>C. Sales of used cars in the United States.<\/p>\n\n\n\n<p>D. Chipsets produced by U.S.-owned firms operating in China.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Correct Answer: D. Chipsets produced by U.S.-owned firms operating in China.<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\">Explanation (Approx. 300 words):<\/h3>\n\n\n\n<p>To understand why <strong>Option D<\/strong> is correct, we must differentiate between <strong>Gross Domestic Product (GDP)<\/strong> and <strong>Gross National Product (GNP)<\/strong>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>GDP<\/strong> measures the total value of goods and services <strong>produced within a country\u2019s borders<\/strong>, regardless of who owns the production assets. In other words, it includes all production occurring <strong>inside the United States<\/strong>, whether by American or foreign companies.<\/li>\n\n\n\n<li><strong>GNP<\/strong>, on the other hand, measures the total value of goods and services <strong>produced by the nationals (citizens and businesses) of a country<\/strong>, regardless of where they are located. So, it includes production by <strong>U.S. residents and companies<\/strong>, even if the production happens <strong>outside the U.S.<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Let\u2019s evaluate the options:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>A. Tips received by a waiter in New Jersey<\/strong>: This is part of both GDP and GNP since the service occurs within the U.S. and by a U.S. resident.<\/li>\n\n\n\n<li><strong>B. Auto parts produced by a Japanese-owned firm operating in North Carolina<\/strong>: Since production occurs in the U.S., it counts toward <strong>U.S. GDP<\/strong>, but because the firm is Japanese-owned, it <strong>does not count toward U.S. GNP<\/strong>.<\/li>\n\n\n\n<li><strong>C. Sales of used cars in the United States<\/strong>: These are <strong>not included in either GDP or GNP<\/strong> because GDP only counts new production. Used goods don&#8217;t represent new economic activity.<\/li>\n\n\n\n<li><strong>D. Chipsets produced by U.S.-owned firms operating in China<\/strong>: This production happens <strong>outside the U.S.<\/strong>, so it does <strong>not count in U.S. GDP<\/strong>. However, because the firm is U.S.-owned, the value <strong>does count in U.S. GNP<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>Thus, <strong>Option D<\/strong> is the correct answer because it involves production by a U.S.-owned firm abroad\u2014excluded from GDP but included in GNP.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Which of the following would be included in U.S. GNP but not in U.S. GDP? A. The tips received by a waiter in New Jersey. B. Auto parts produced by a Japanese-owned firm operating in North Carolina. C. Sales of used cars in the United States. D. Chipsets produced by U.S.-owned firms operating in China. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-210310","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/210310","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=210310"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/210310\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=210310"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=210310"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=210310"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}