AP Macroeconomics Question 234: Answer and Explanation
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1. An Italian company opens a shoe factory in the U.S. The production from this shoe company is included in
- A. the Italian GDP.
- B. the U.S. GDP.
- C. both the Italian and U.S. GDP
- D. both the Italian and U.S. GDP split 50/50.
- E. neither the Italian nor U.S. GDP.
Correct Answer: B
(B) It does not matter where the company has its headquarters. GDP counts production within a nation's borders.