The value of all motorcycles produced by Harley Davidson in the United States is

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BlackTom AI · Accepted Answer

To analyze the question, we need to recall what GDP and GNP measure.
Option 1: 'included in the U.S. GNP but not the U.S. GDP.' This would imply production by Harley-Davidson outside the U.S. is counted in GDP, or that production inside the U.S. by a foreign-owned entity is excluded from GDP. Neither is accurate here because the motorcycles are produced in the U.S. by a U.S. company, so both GDP and GNP considerations apply.
Option 2: 'included in the U.S. GDP but not the U.S. GNP.' GDP counts value created within the geographic borders, regardless of who owns the factors of production. GNP counts value produced by the nationals of the country, regardless of where production occurs. Since Harley-Davidson is a U.S.-based company, its production within the United States is counted in both GDP (because it happens inside the U.S.) and GNP (because it is produced by U.S. residents/owned factors of production).
Option 3: 'not included in either the U.S. GDP or GNP.' This would be true only if production occurred entirely outside the U.S. by non-residents, which is not the case here, so this option is incorrect.
Option 4: 'included in both the U.S. GDP and GNP.' This aligns with the definitions: GDP includes production within U.S. borders, and GNP includes production by U.S.-owned factors of production, even if some production occurs abroad. In this scenario, production occurs in the U.S. and is generated by a U.S. company, so it qualifies for both measures.
In summary, the motorcycles produced domestically by a U.S. company are counted in the domestic territory for GDP and attributed to U.S.-owned factors for GNP, making the correct choice the one that states inclusion in both measures.

ECON 104, Section 001: Macroeconomic Analysis (22511--BR---P-ECON----104-------001-) Quiz 3

The value of all motorcycles produced by Harley Davidson in the United States is

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