E a computer used by Intel to design new computer chips 32 T

E) a computer used by Intel to design new computer chips 32) Total income in a country in 2012 is $780 billion. Total expenditure A) cannot be determined. B) is greater than $780 billion. C) is $780 billion. D) is less than $780 billion. E) is either less than or equal to $780 billion. in the country 33) If a Chinese citizen earns in the US, it is a part of A) US GNP B) Chinese GDP C) Chinese GNP D) All of the above E) None of the above MNP from GNP?

Solution

Question 32

It has been provided that total income in a country in 2012 is $780 billion.

National income accounts states that total income in a country is always equal to the total expenditure in a country.

This is the fact that leads to similar answer with respect to the calculation of GDP, whether one uses value added method, income method, or exenditure method.

So, if the total income in a country in 2012 is $780 billion then the total expenditure in the country will also be $780 billion.

Hence, the correct answer is the option (c).

Question 33

Income earned by a person in a foreign country is part of the GNP of the country of which the stated person is citizen.

So, if a Chinese citizen earns in the US, it is a part of Chinese GNP.

Hence, the correct answer is the option (c).