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Michael is a U.S. citizen who currently lives in St. Louis. He hires John, an authorized vintage car broker (also a U.S. citizen, living in the same city) to help sell Mike's first-generation 1965 Ford Mustang (pony car class) produced in Valencia, Venezuela. Which of the following is TRUE

A. Both the car sale and John's commission will be counted in the U.S. GDP
B. Neither the car sale, nor the commission will be reflected in the U.S. GDF
C. John's commission will be counted only in the GNP of U.S
D. John's commission will be counted in both U.S. GDP and GNP.
E. Only the car sale will be counted in the U.S. GDP.

Respuesta :

Answer:

The correct answer is C. Only John's commission will be counted in the U.S.

Explanation:

When developing a job that generates income in St. Louis, it is considered that any sale you make because you are within the United States is taken into account within the GNP. For its part, the country that produced the car should consider it as GDP because it is part of the production carried out in a different jurisdiction.

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