Suppose you have two countries (A and B) each with one firm (a and b) producing

Question

Suppose you have two countries (A and B) each with one firm (a and b) producing one product (T). Firm "a" produces $50,000 worth of T in Country A with local factors of production and $60,000 worth of T in Country B with Country A's factors of production (i.e. workers from country A). Firm "b" produces $120,000 worth of of production (.e. workers from country A). Firm "b" produces 120,000 worth of T in Country B. Half of this production uses workers from Country A and the other half uses workers from Country B 1. What is Country A's GDP? 2. What is Country A's GNP?

Explanation / Answer

1.

.GDP=50000

2.GNP=GDP+NFI
=50000+(60000+60000)
=170000

3.GDP=120000+60000=180000

4.GNP=GDP+NNI
=180000+0-60000-60000
=60000

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.