In: Economics
Question 1
A Japanese firm manufactures cars in the US. Assume that each car sells for $20,000 to a consumer in the US. Also assume that on each car the Japanese manufacturer earns $2000 in profits and remits those to the holding company in Japan. Assume that the car is manufactured with US made parts only.
What is the contribution of each car to the US GNP?
Question 2
A Japanese firm manufactures cars in the US. Assume that each car sells for $20,000 to a consumer in the US. Also assume that on each car the Japanese manufacturer earns $2000 in profits and remits those to the holding company in Japan. Assume that the car is manufactured with US made parts only.
What is the contribution of each car to the US GDP?
Question 3
A nation that has been a net receipient of foreing investment is likely to have its GDP exceed its GNP.
Question 4
How would the following activity get counted in the GDP?
I purchase a used car from another individual (the car's current owner) for $2000. There are no other parties involved.
Question 5
Consider the following scenario:
I purchase a used car from a used car dealer. The car's price is $2000. Out of that $2000, $400 constitutes the profits of the dealer. How would this trade enter the GDP?