The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States v 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 Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys the sedan on December 24. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 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.) You chop down a cherry tree on your property in California and make a dining room table in 2020. A similar table sells for $800 in a local furniture store. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2020. It sells the car at a dealership in Dallas on February 2, 2020. 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.
The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced within the United States v 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 Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys the sedan on December 24. Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 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.) You chop down a cherry tree on your property in California and make a dining room table in 2020. A similar table sells for $800 in a local furniture store. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2020. It sells the car at a dealership in Dallas on February 2, 2020. 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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The gross domestic product (GDP) of the United States is defined as
the market value of
all
final goods and services produced
within the United States
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
Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 14, 2020. A family buys
the sedan on December 24.
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 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.)
You chop down a cherry tree on your property in California and make a dining room table in 2020. A similar table sells
for $800 in a local furniture store.
Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6,
2020. It sells the car at a dealership in Dallas on February 2, 2020.
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.
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