Based on this definition, indicate which of the following transactions will be i
ID: 1149102 • Letter: B
Question
Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2014.
which included which not
MindTap-Cengage Learning-Google Chrome ng.cengage.com/static/nb/ui/index.html?nbld=719368&nbNodeld;=270948504&deploymentld-473; 1282 193391 5703062648569&elSBN;=9781285853482#!&parentId-270948570; MINDTAP From Cenga Mazen Alzahrani (? Aplia Homework: Measuring a Nation's Income Due Today at 11:59 PMEST The gross domestic product (GDP) of the United states is defined as the market value of all final goods and services produced within the United States in a given period of time Based on this definition, indicate which of the following transactions wll be included in (that is, directly increase) the GDP of the United States in 2014 2014 GDP Included Excluded Scenario Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 1, 2014. An elementary school student buys the chocolate bar on December 28 Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 30, 2014. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2014 (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.) Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 18, 2014. Calculo imports the calculator into the United States on May 7, 2014 You chop down a cherry tree on your property in Califomia and make a dining room table in 2014. A similar table sells for $800 in a local furniture store. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 10 2014. It sells the car at a dealership in Chicago on February 7, 2014. A-Z 0 Type here to search 1/28/2018 2Explanation / Answer
The blanks are filled-in correctly.
(1) Chocolate Express - Included in GDP
(Even though it is a Swiss company, production is in US and consumption is in US. So it will increase Consumption component of GDP)
(2) Rotato - Included in GDP
(Rotato's sale will increase the sale for Speedmaster, increasing GDP)
(3) Calculo - Excluded from GDP
(Since production is outside US, this is Import)
(4) Chopping down a tree - Excluded from GDP
(I chop down m own tree without a market transaction, so this is excluded)
(5) Zippycar - Included in GDP
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