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 2018. 2018 GDP Scenario Included Excluded Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 17, 2018. Calculo imports the calculator into the United States on May 21, 2018. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2018. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2018. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 9, 2018. It sells the car at a dealership in Detroit on February 24, 2018. The Jones family buys an antique silver platter at an auction in upstate New York on March 17, 2018. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 5, 2018. A family buys the sedan on December 24.
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 2018. 2018 GDP Scenario Included Excluded Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 17, 2018. Calculo imports the calculator into the United States on May 21, 2018. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2018. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2018. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 9, 2018. It sells the car at a dealership in Detroit on February 24, 2018. The Jones family buys an antique silver platter at an auction in upstate New York on March 17, 2018. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 5, 2018. A family buys the sedan on December 24.
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
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
2018.
2018 GDP
Scenario
Included
Excluded
Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 17, 2018. Calculo imports
the calculator into the United States on May 21, 2018.
Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2018. It sells the wood to
Buildit and Partners, a developer, for use in the production of a new house that will be built in the United States in
2018. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of
production of the new house on GDP.)
Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 9,
2018. It sells the car at a dealership in Detroit on February 24, 2018.
The Jones family buys an antique silver platter at an auction in upstate New York on March 17, 2018.
Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 5, 2018. A family buys
the sedan on December 24.
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