Post Utme Mountain Top University 2018 Economics Question 2

Practice objective / multiple choice question 2 from the 2018 Post Utme Mountain Top University Economics examination.

Post Utme Mountain Top University 2018 Economics Objective / Multiple Choice
Question 2 POST_UTME_MOUNTAIN_TOP_UNIVERSITY • 2018 • ECONOMICS • objective

A country's GDP is calculated as the sum of all final goods and services produced within its borders. However, if a foreign company produces goods within the country, but the company is owned by a foreign entity, how will this affect the country's GDP?

Answer Options

A. The country's GDP will increase because the foreign company is producing goods within its borders.
B. The country's GDP will decrease because the foreign company is owned by a foreign entity.
Correct Answer C. The country's GDP will remain unchanged because the foreign company is producing goods within its borders.
D. The country's GDP will increase because the foreign company is creating jobs within its borders.
Correct Answer
C
Correct Option:
The country's GDP will remain unchanged because the foreign company is producing goods within its borders.

About This Question

This is Post Utme Mountain Top University 2018 Economics Question 2. It is one of the objective questions from the 2018 Post Utme Mountain Top University Economics examination.

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