7. A U.S. market research firm deconstructed an Apple iPod and studied the manufacturers, costs, and profits of each of the parts and components. The final results are ■ An Apple iPod sells in the United States for $299. ■ A Japanese firm, Toshiba, makes the hard disk and display screen, which cost $93. ■ Other components produced in South Korea cost $25. ■ Other components produced in the United States cost $21. ■ The iPod is assembled in China at a cost of $5. ■ The costs and profits of retailers, advertisers, and transportation firms in the United States are $75.

a. What is Apple’s profit?

b. Where in the national income and product accounts of the United States, Japan, South Korea, and China are these transactions recorded.

c. What contribution does one iPod make to world GDP?