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. 2020 GDP Scenario Included Excluded An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 11, 2020. Calculo imports the calculator into the United States on May 29, 2020. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 6, 2020. It sells the latte to a customer immediately. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 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 exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on 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. 2020 GDP Scenario Included Excluded An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021. Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 11, 2020. Calculo imports the calculator into the United States on May 29, 2020. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 6, 2020. It sells the latte to a customer immediately. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 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 exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.)
Chapter1: Making Economics Decisions
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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
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.
2020 GDP
Scenario
Included
Excluded
An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021.
Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 11, 2020. Calculo imports
the calculator into the United States on May 29, 202o.
Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An
elementary school student buys the chocolate bar on December 24.
Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 6, 2020. It sells the latte
to a customer immediately.
Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 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
exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the
cereal on GDP.)
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