2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the market value of final goods and services produced within the United States all in a given period of time. 2023 GDP Included Excluded 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 2023. Scenario An accountant starts a client's 2023 tax return on April 14, 2024, finishing it just before midnight on April 15, 2024. Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown on January 23, 2023. It sells the car at a dealership in San Francisco on February 14, 2023. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 11, 2023. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2023. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.) Parkway Motors, a U.S. automobile company, produces a convertible at a plant in Mexico on March 2, 2023. Parkway Motors imports the convertible into the United States on May 24, 2023. Sleepytown, a Finnish furniture company, produces a bed frame at a plant in Virginia on December 4, 2023. It sells the bed frame to a college student on December 23. о Ο о о о
2. Activities included (and not included) in the calculation of GDP The gross domestic product (GDP) of the United States is defined as the market value of final goods and services produced within the United States all in a given period of time. 2023 GDP Included Excluded 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 2023. Scenario An accountant starts a client's 2023 tax return on April 14, 2024, finishing it just before midnight on April 15, 2024. Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown on January 23, 2023. It sells the car at a dealership in San Francisco on February 14, 2023. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 11, 2023. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2023. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.) Parkway Motors, a U.S. automobile company, produces a convertible at a plant in Mexico on March 2, 2023. Parkway Motors imports the convertible into the United States on May 24, 2023. Sleepytown, a Finnish furniture company, produces a bed frame at a plant in Virginia on December 4, 2023. It sells the bed frame to a college student on December 23. о Ο о о о
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The gross domestic product (GDP) of the United States is defined as the market value of
final goods and services produced
within the United States
all
in a given period of time.
2. Activities included (and not included) in the calculation of GDP
2023 GDP
Included
Excluded
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
2023.
O
O
о
о
Scenario
An accountant starts a client's 2023 tax return on April 14, 2024, finishing it just before midnight on April 15, 2024.
Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown
on January 23, 2023. It sells the car at a dealership in San Francisco on February 14, 2023.
Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 11, 2023. It sells the corn
syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2023. (Note: Focus
exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the
cereal on GDP.)
Parkway Motors, a U.S. automobile company, produces a convertible at a plant in Mexico on March 2, 2023. Parkway
Motors imports the convertible into the United States on May 24, 2023.
Sleepytown, a Finnish furniture company, produces a bed frame at a plant in Virginia on December 4, 2023. It sells the
bed frame to a college student on December 23.
о
о
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