- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics (1)
- Reading 14. Aggregate Output, Prices, and Economic Growth
- Subject 1. Gross Domestic Product
CFA Practice Question
An Indian software engineer works for a computer manufacturer in San Jose. He makes $60,000 a year and sends $10,000 to his family in India each year. The amount that should be counted towards U.S. GDP is ______.
A. 60,000
B. 50,000
C. 10,000
Explanation: $60,000 should count towards U.S. GDP, since GDP counts goods and services produced within the geographic borders of the country. The fact that he sends $10,000 to India is another matter (balance of trade).
User Contributed Comments 1
| User | Comment |
|---|---|
| danlan | Should be more than $60000 (income earned by the software company is not included), but here, we do not count that. |