2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all 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 2021. Scenario Lane Motors, a Japanese automobile company, produces a self-driving car at a plant in Arizona on December 9, 2021. A family buys the self-driving car on December 24. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2021. 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 2021. (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.) Thickburger, a U.S. fast-food company, produces a double cheeseburger at one of its many locations throughout the midwest on January 14, 2021. It sells the double cheeseburger to a customer that same day. in a given period of Gamewear, a U.S. electronics company, produces a VR headset at a plant in South Korea on March 27, 2021. Gamewear imports the VR headset into the United States on May 18, 2021. The Wilson family buys an antique serving platter at an auction in upstate New York on March 27, 2021. 2021 GDP Included Excluded O O
2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all 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 2021. Scenario Lane Motors, a Japanese automobile company, produces a self-driving car at a plant in Arizona on December 9, 2021. A family buys the self-driving car on December 24. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2021. 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 2021. (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.) Thickburger, a U.S. fast-food company, produces a double cheeseburger at one of its many locations throughout the midwest on January 14, 2021. It sells the double cheeseburger to a customer that same day. in a given period of Gamewear, a U.S. electronics company, produces a VR headset at a plant in South Korea on March 27, 2021. Gamewear imports the VR headset into the United States on May 18, 2021. The Wilson family buys an antique serving platter at an auction in upstate New York on March 27, 2021. 2021 GDP Included Excluded O O
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2. Activities included (and not included) in the calculation ofGDP
The gross domestic product (GDP) of the United States is defined as
the
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
2021.
Scenario
Lane Motors, a Japanese automobile company, produces a self-driving car at a plant in Arizona on December 9, 2021. A
family buys the self-driving car on December 24.
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2021. 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 2021.
(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.)
Thickburger, a U.S. fast-food company, produces a double cheeseburger at one of its many locations throughout the
midwest on January 14, 2021. It sells the double cheeseburger to a customer that same day.
in a given period of
Gamewear, a U.S. electronics company, produces a VR headset at a plant in South Korea on March 27, 2021. Gamewear
imports the VR headset into the United States on May 18, 2021.
The Wilson family buys an antique serving platter at an auction in upstate New York on March 27, 2021.
2021 GDP
Included
O
Excluded
O
O
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