Question

A Japanese automaker produces $1 million worth of automobiles in its factory in the United States. How much of that is added into the GDP of the United States? Please choose the correct answer from the following choices, and then select the submit answer button.

A) None
B) $250,000
C) $1 million
D) $500,000

Answer 1

The correct answer is C. A Japanese automaker produces $1 million worth of automobiles in its factory in the United States, so all that amount is added into the GDP of the United States.

Step-by-step explanation:

In macroeconomics, the gross domestic product (GDP) is a macroeconomic magnitude that expresses the monetary value of the production of goods and services of final demand of a country or region during a given period, usually one year. That is to say, the origin of the funds that are made to the production is not taken into account, but the place where this production takes place. It doesn't matter that the automaker is Japanese, as long as the production is carried out in America.