5% MINDTAP Homework (Ch 10) 2. Activities included (and not Included) in the cal

Question

5% MINDTAP Homework (Ch 10) 2. Activities included (and not Included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the in a given period of time. Based on this definition, indicate which of the following transactions wil be indluded in (that is, directly increase) the GOP of the United States in 2014, 2014 GDP Included Excluded Roadway Motors, a U.s. automobile company, produces a convertible at a pliant in Germany on March 31, 2014 Roadway Motors imports the convertible into the United States on May 30, 2014 Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 2, 2014. It sells the wood to Buildt and Partners, a developes, for use in the production of a new house that will be buit in the United States in 2014 Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP) The Jones femily buys an antique silver platter at an auction in upstate New York on March 31, 2014. Zippycar, a u.S. automobile 2014. t sells the car at a dealership in San Francisco on February 13, 2014 Chocolate Express, Swiss choooiate company, produces a chocolate elementary school student buys the chocolate bar on December 28. e compemy, produces a convertible at a manufacturing plant in Minneapolis on January 31 bar at a plant in limnos an December 1, 2014, An MacBook Air 1 2 4

Explanation / Answer

Not included, because GDP include the value of goods produced within the boundary of a nation. Included, because production is within the boundaries of USA Not included, expenditure made on purchasing used goods are not included in GDP. Not included because it leads to double counting Included

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