Drop box one options ( costs of producing or market value of or wholesale cost of) Drop box two (final and intermediate goods and services produced or final goods and services produced or final goods and services consumed) drop box three (by u.s citizens or by us owned companies or within the United States)
Drop box one options ( costs of producing or market value of or wholesale cost of) Drop box two (final and intermediate goods and services produced or final goods and services produced or final goods and services consumed) drop box three (by u.s citizens or by us owned companies or within the United States)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Drop box one options ( costs of producing or market value of or wholesale cost of)
Drop box two (final and intermediate goods and services produced or final goods and services produced or final goods and services consumed)
drop box three (by u.s citizens or by us owned companies or within the United States)
Transcribed Image Text:2. Activities included (and not included) in the calculation ofGDP
all
The gross domestic product (GDP) of the United States is defined as the
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
2020.
2020 GDP
Included
Excluded
Scenario
Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 19, 2020. It sells the corn
syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020. (Note: Focus
the
exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production
cereal on GDP.)
Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 15, 2020.
Roadway Motors imports the convertible into the United States on May 3, 2020.
Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 12, 2020. An
elementary school student buys the chocolate bar on December 24.
The Jones family buys an antique silver platter at an auction in upstate New York on March 15, 2020.
Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 8,
2020. It sells the car at a dealership in Denver on February 14, 2020.
96%
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