1.A painter spends $200 on paint. He then bills the homeowner $1,000 to cover his time and his expenses.What is the amount of these transactions that is added to gross domestic product (GDP)?

Answer is 1,000.

Gross national product (GNP): GPS + income from non-resident sources abroad.

Gross national income (GNI): GDP + income from non-resident sources abroad. GNI is the term used by the World Bank and other international organizations to supersede the term GNP.

2.If Dave's company has a total cost of $100 when quantity output is 5, and a total cost of $115 when quantity output is 6, what is the marginal cost of producing the 6th unit?

Answer is $15

Gross national product (GNP): GPS + income from non-resident sources abroad.

Gross national income (GNI): GDP + income from non-resident sources abroad. GNI is the term used by the World Bank and other international organizations to supersede the term GNP.