on Com pass ds ne edd the dnction Some problems will be subm

on Com pass, ds ne edd the dnction Some problems will be submitted e which will be turned in on paper and whic n Compass.* (Compass) Answer the following questions as if the following is all that is produced in 2017: (40 points) 1. (At the U.S. factory) Tesla (a U.S. firm) produces $2.6 billion of cars. o They pay U.K. developers working in the U.S. $500M. o They pay U.S. employees $1.6B. o Tesla depreciates $400M of their capital. (At the U.K. factory) Tesla produces $2.3B of cars in the U.K. o They pay $1.1B to U.K. employees. o They pay $400M to U.S. employees working at the U.K. plant. (In the U.S.), Tesco (a U.K. company) has opened a chain of grocery stores and sells $3.6B in groceries o They pay $2B to U.S. Employees o They pay $200M to U.K emloyees working in the U.S. a.) What is the GDP of the U.S.? b.) What is the GNP of the U.S? c.) What is the GDP of the U.K.? d.) What is the GNP of the U.K.? e.) What is the NDP of the U.S.?

Solution

a. GDP of the U.S.would be summing up = By Tesala (US firm) pay to UK developers working in US $500M + pay to US employees $1.6B + In the last point (Tesco Company in the US), pay to US $2B + pay $200M to UK employees working in US

b. GNP of US would be equal to the GDP US in this example

c. GDP of UK would be = By Tesala at UK factory, pay $1.1B to UK employees + pay $400M to US employees working at UK plant

d. GNP of UK = GDP of UK + US $ 500M pay to UK developers by Tesala firm + $200M pay to UK employees working in US by Tesco

e. NDP of US would be = GDP - (depreciation of $400M of Tesla firm capital)