2. Activities incduded (and not included) in the calculation ofGDP 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 Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21, 2020. It sells the car at a dealership in Detroit on February 10, 2020. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2020. It sells the wood to Buldit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exdusively on whether production of the wood increases GDP directly, and ignare the effect of production of the new house 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 $600 in a local furniture store Sofaland, a Swedish furmiture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to a college student on December 24 Calculo, a U.S. electronics company, produces a calculator at a planit in Indonesia on Harch 10, 2020. Calculo imports the calculator into the United States on May 20, 2020.
2. Activities incduded (and not included) in the calculation ofGDP 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 Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21, 2020. It sells the car at a dealership in Detroit on February 10, 2020. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2020. It sells the wood to Buldit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020. (Note: Focus exdusively on whether production of the wood increases GDP directly, and ignare the effect of production of the new house 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 $600 in a local furniture store Sofaland, a Swedish furmiture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to a college student on December 24 Calculo, a U.S. electronics company, produces a calculator at a planit in Indonesia on Harch 10, 2020. Calculo imports the calculator into the United States on May 20, 2020.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:2. Activities incduded (and not included) in the calculation ofGDP
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
Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 21,
2020. It sells the car at a dealership in Detroit on February 10, 2020.
Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 13, 2020. It sells the wood to
Buldit and Partners, a developer, for use in the production of a new house that will be built in the United States in 2020.
(Note: Focus exdusively on whether production of the wood increases GDP directly, and ignore the effect of production
of the new house on GDp)
You chop down a cherry tree on your property in California and make a dining room table in 2020. A símilar table sells
for $800 in a local furniture store
Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to
a college student on December 24
Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 10, 2020. Calculo imports
the calculator into the United States on May 20, 2020.
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