The gross domestic product (GDP) of the United States is defined as the all 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. Scenario Billy Bonka's, a German chocolate company, produces a chocolate bar at a plant in Pennsylvania on December 1, 2020. A high schooler buys the chocolate bar on December 28. Gamewear, a U.S. electronics company, produces a VR headset at a plant in South Korea on March 20, 2020. Gamewear imports the VR headset into the United States on May 25, 2020. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 10, 2020. 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 2020. (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.) Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown 2020. It sells the at a dealership in New York City on February 4, 2020. The Wilson family buys an antique serving platter at an auction in upstate New York on March 20, 2020. 2020 GDP Included Excluded O O O O O
The gross domestic product (GDP) of the United States is defined as the all 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. Scenario Billy Bonka's, a German chocolate company, produces a chocolate bar at a plant in Pennsylvania on December 1, 2020. A high schooler buys the chocolate bar on December 28. Gamewear, a U.S. electronics company, produces a VR headset at a plant in South Korea on March 20, 2020. Gamewear imports the VR headset into the United States on May 25, 2020. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 10, 2020. 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 2020. (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.) Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown 2020. It sells the at a dealership in New York City on February 4, 2020. The Wilson family buys an antique serving platter at an auction in upstate New York on March 20, 2020. 2020 GDP Included Excluded O O O 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 of GDP
The gross domestic product (GDP) of the United States is defined as the
all
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.
Scenario
Billy Bonka's, a German chocolate company, produces a chocolate bar at a plant in Pennsylvania on December 1, 2020.
A high schooler buys the chocolate bar on December 28.
Gamewear, a U.S. electronics company, produces a VR headset at a plant in South Korea on March 20, 2020. Gamewear
imports the VR headset into the United States on May 25, 2020.
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 10, 2020. 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 2020.
(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.)
Generic Motor Company, a U.S. automobile company, produces a pickup truck at a manufacturing facility in Lordstown
on January 11, 2020. It sells the car at a dealership in New York City on February 4, 2020.
The Wilson family buys an antique serving platter at an auction in upstate New York on March 20, 2020.
2020 GDP
Included Excluded
O
O
O
O
O
O
O
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