AP Macroeconomics Question 234: Answer and Explanation

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Question: 234

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.