The gross domestic product (GDP) of the United States is defined as the_market v
ID: 1162638 • Letter: T
Question
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 will be included in (that is, directly increase) the GDP of the United States in 2016. 2016 GDP Included Excluded Scenarid The Jones family buys an antique silver platter at an auction in upstate New York on March 2, 2016 Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 2, 2016. Calculo imports the calculator into the United States on May 10, 2016. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 15, 2016. A family buys the sedan on December 31. Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 17, 2016. It sells the hamburger to a customer that same day Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 12, 2016. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2016 (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.)Explanation / Answer
PART-1)
Solution: market value; final goods and services produced; within the U.S.
Explanation: The gross domestic product is the total market value of final goods and services produced in a nation during one year.
PART-2)
1) Solution: Excluded
Explanation: The second hand sales do not add to the GDP of a country
2) Solution: Excluded from GDP calculation
Explanation: Since the product is produced in Indonesia and GDP is the final value of the goods and services produced within the nation
3) Solution: Included in GDP calculation
Explanation: Since the product is produced in United States; and GDP includes final value of the goods and services produced within the nation
4) Solution: Included in GDP calculation
Explanation: Since the product is produced in United States; and GDP includes final value of the goods and services produced within the nation
5) Solution: Excluded from GDP calculation
Explanation: Intermediate goods are excluded from GDP calculation
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