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Category - Economics

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Which of the following would not be included in the USA GDP?
  1. Government spending
  2. The salary of a non-US citizen working in the US
  3. Profit from a factory owned by a US citizen but operated in Brazil
  4. Money spent by an Italian company in the US
Explanation
Answer: C - Profit from a factory owned by a US citizen that is operated in Brazil would not be included in the US gross domestic product, though it would be included in gross national product. GDP measures productivity that happens within a country, regardless of who is responsible for it. Gross national product measures the productivity of a nation’s citizens, regardless of where those citizens are operating.
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