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Which of the following is NOT counted in the GNP of the United States?

A. The wage of a US citizen who works in a foreign country for a foreign firm
B. The profit earned by a restaurant located in the US but owned by a Mexican company.
C. The value of services that are produced by state and local governments in the US.
D. The interest earned by a US bank on loans to a business firm located in Brazil.

User Vinhboy
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1 Answer

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Final answer:

The interest earned by a US bank on loans to a business firm located in Brazil is NOT counted in the GNP of the United States.

Step-by-step explanation:

The correct answer is D. The interest earned by a US bank on loans to a business firm located in Brazil.

The GNP (Gross National Product) of a country includes the value of goods and services produced by its citizens and firms, wherever they are located. However, it does not include certain types of income earned by domestic businesses from abroad. In this case, the interest earned by a US bank on loans to a business firm located in Brazil does not count in the GNP of the United States.

To summarize, the GNP of the United States includes the wage of a US citizen who works in a foreign country for a foreign firm (option A), the profit earned by a restaurant located in the US but owned by a Mexican company (option B), and the value of services produced by state and local governments in the US (option C).

User Zeroimpl
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