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A US-Owned Car Factory in Mexico Produces $5 Million of Cars

Question 30

Multiple Choice

A U.S.-owned car factory in Mexico produces $5 million of cars.$2.5 million of these cars are sold in Mexico and the other $2.5 million are sold in the U.S.In both cases $1 million of the value of the cars was due to U.S-owned equipment located in Mexico and U.S.managers working in Mexico.How much did this production contribute to U.S.GDP?


A) $0
B) $1 million
C) $2 million
D) None of the above are correct

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