1. Problems and Applications Q1 Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction You purchase a box of Belgian chocolate. Dell sells a desktop computer from its inventory to the Johnson family. California hires workers to repave Highway 101. You pay a domestic plumber for fixing a leak in your bathroom. Uncle Paul pays a domestic contractor for renovating his home. Honda expands its factory in Ohio. The federal government sends your grandmother a Social Security check. Your parents buy a new house from a local builder. Consumption Investment O 00 O 0 0 0 Government Purchases O Net Exports 00

1. Problems and Applications Q1 Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. Transaction You purchase a box of Belgian chocolate. Dell sells a desktop computer from its inventory to the Johnson family. California hires workers to repave Highway 101. You pay a domestic plumber for fixing a leak in your bathroom. Uncle Paul pays a domestic contractor for renovating his home. Honda expands its factory in Ohio. The federal government sends your grandmother a Social Security check. Your parents buy a new house from a local builder. Consumption Investment O 00 O 0 0 0 Government Purchases O Net Exports 00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What components of GDP (if any) would each of the following transactions affect? (with the expenditure approach) a. Dodge sells a Neon from its inventory to someone in France. b. Uncle Frank buys a newly constructed house in Atlanta. c. A family goes to Great Clips to get their hair cut. d. Chicken purchased by a chef preparing Chicken Marsala for her customers. e. Oprah will only buy Columbian coffee. f. Home Depot expands some of its stores in the Chicagoland area. g. An extension of tollway I-355 built by the state of llinois
Which of the following are included in the year’s GDP? which are excluded? Explain your answers Coca-Cola builds a new bottling unit in the United states. Income of a tax accountant working for H&R block. The value of car batteries used in production of electric cars.
Not a previously submitted/graded question.
Gross domestic product (GDP) is defined as the: A. value of all final goods and services produced in a country during a period of time B. value of all final goods produced by a country’s resources that are in foreign countries during a period of time. C. value of all final goods that can be produced in a country by utilizing all resources during a period of time. D. value of the income earned by the owners of resources in a country during a period of time E. value of all intermediate goods and services produced in a country during a period of time
The table contains price and quantity information for two vehicle models produced by Ford Motor Company, the F-series trucks and Escape SUVs. 2016 2016 2017 2017 price quantity price quantity Ford Escape SUV's $24,485 307,069 $24,645 308,296 F-Series Trucks $44,400 820,799 $47,800 896,764 A. Calculate the amount contributed by Ford to U.S. GDP (real and nominal) from the sales of the two models in 2016 and 2017. B. Determine the growth rate of nominal GDP (if Ford were the entire economy). C. Determine the growth rate of real GDP (if Ford were the entire economy).
Adam lives in California and, after graduating college, opened up an ice cream business on the Venice Beach boardwalk. Which items are not counted in GDP? Select all that apply and explain why each of the items you selected is not counted in GDP. a. Adam purchases a new sub-zero refrigerator for his ice cream shop. b. The neighborhood kids broke Adam's window at the ice cream shop during a baseball game. Adam replaces the window. c. After a successful summer, Adam travels to Egypt to visit the Red Sea. d. Adam sells his used accounting textbook to his best friend Billy. e. Adam spends a Saturday afternoon mowing his elderly neighbor's lawn. He earns $100 cash that day.
Problems and applications Q1
Consumption Investment Indicate what components of GDP (if any) each of the following transactions would affect. Check all that apply. 3. Problems and Applications Q1 Transaction Uncle John receives a check from the federal government for unemployment insurance benefits. You pay a hairdresser for a haircut. New York hires workers to plow snow after a snowstorm. Uncle Henry buys a new refrigerator from a domestic manufacturer. Uncle John orders 10 new computers for his finance business. Ford sells a Mustang from its inventory to the Martinez family. Ford manufactures a Focus and adds it to its inventory. You buy a new Toshiba computer. ☐ ☐ ☐ ☐ Government Purchases Net Exports ப ☐ ☐ ☐ ☐ ☐ 000
Question 4 Which of the following transactions are viewed as investment in the national income (GDP) accounts? (a) You buy $1000 of federal government bonds; (b) Richard, a carpenter, builds himself a log cabin: (c) The Art Gallery of Nova Scotia buys a painting by Picasso for $20 million. (d) Your family buys a newly constructed home. (e) Apple Computer Corporation builds a new factory to manufacture computers;
1. Which of the following are included in this year’s GDP? Explain your answer in each. A 2-hour decrease in the length of the workweek. The purchase of an AT&T corporate bond. A $2 billion increase in business inventories.
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GDP Deflator (NomGDP/Real GDP)*100 88.4 Assignment 3 Chapter 6. Determine if each of the following would be included or not included in USA GDP for 2020. All transactions occurred in 2020. Circle Yes or No 1. Rebecca real estate agent sells a house built in 2014 for $1,500,000. Yes No 2. $250,000 Bushels of wheat produced in 2020 were exported to Mexico. Yes No 3. Michael, a US citizen works over in Germany producing automobiles. Yes No 4. A Mickey Mantle Rookie card is sold on EBAY for $60,000. Yes No 5. John takes his family out for dinner at Shake Shack Dec 15,2020. Yes No 6. Quark company purchases $5,000,000 of new property, plant, and equipment. Yes No 7. The Government employees Higgs Inc. to repair the roads in Washington DC at a cost of $2,500,000. Yes No 8. Veronica secretly sells Marijuana out of her laundry mat and makes $750,000 revenue for 2020. Yes No 9. General Motors has $35,000,000 Work in Process inventory on Dec 31, 2020 Yes No