Which people would contribute to the GDP of the United States? Select all that apply.

(1 point)
• a U.S. citizen producing goods in Portugal
• a citizen of Japan producing goods in the United States
• a U.S. citizen producing goods in the United States
• a citizen of Spain producing goods in Brazil
• a U.S. citizen producing goods in Canada

1 answer

To contribute to the GDP of the United States, economic activity must take place within the U.S. borders, regardless of the nationality of the individual or company involved. Therefore, the following would contribute to the U.S. GDP:

  • A citizen of Japan producing goods in the United States (This counts because the production is happening in the U.S.)
  • A U.S. citizen producing goods in the United States (This counts as well since production is occurring in the U.S.)

The others do not contribute to the U.S. GDP:

  • A U.S. citizen producing goods in Portugal does not contribute because the production is outside the U.S.
  • A citizen of Spain producing goods in Brazil does not contribute because the production is outside the U.S.
  • A U.S. citizen producing goods in Canada does not contribute because the production is outside the U.S.

So, the answers are:

  • a citizen of Japan producing goods in the United States
  • a U.S. citizen producing goods in the United States