Question 15Which of the following would be included in GDP, the purchase of staplers from Staples by a cardealership and by Carl for his kids to play with at home.Both are included in BDPNeither would be included in GDPCarl's purchase would be included but the car dealerships would notThe car dealership's purchase would be included but Carl's would notQuestion 16Which of the following would lead to growth in GDPInvestment in plant and equipment by businessInvestments in stocks by your 401KPurchase of a homeAll of the above will lead to GDP growth

Which of the following would be included in GDP, the purchase of staplers from Staples by a car dealership and by Carl for his kids to play with at home. Both are included in BDP Neither would be included in GDP Carl's purchase would be included but the car dealerships would not O The car dealership's purchase would be included but Carl's would not

Which of the following would be included in GDP, the purchase of staplers from Staples by a car dealership and by Carl for his kids to play with at home. Both are included in BDP Neither would be included in GDP Carl's purchase would be included but the car dealerships would not O The car dealership's purchase would be included but Carl's would not

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following transactions count towards GDP? A The selling of an empty plot of land. в The real estate fees associated with the sale of an empty plot of land. Doing yard work on your lawn at home. Lending your shovel to your neighbor so they can work on their yard.
Adam lives in California and, after graduating college, opened up an ice cream business on the Venice Beach boardwalk. Which items are not counted in GDP? Select all that apply and explain why each of the items you selected is not counted in GDP. a. Adam purchases a new sub-zero refrigerator for his ice cream shop. b. The neighborhood kids broke Adam's window at the ice cream shop during a baseball game. Adam replaces the window. c. After a successful summer, Adam travels to Egypt to visit the Red Sea. d. Adam sells his used accounting textbook to his best friend Billy. e. Adam spends a Saturday afternoon mowing his elderly neighbor's lawn. He earns $100 cash that day.
A car air conditioning system to be inserted in new cars was manufactured in 2019 and sold to the Ford Motor Company for $3,000. In 2019, Ford Motor Company inserted this air condintioning system into a Ford Mustang Convertible and now the car is ready for sale at $25,000. What amount would get included in 2019's GDP?
Which of the following is included in GDP check all correct answers government transfer payments form, buying new Mac, missionary, purchases of company, stocks, government, purchases of labor, Gots and services. Savings consumes consumers, buying new cell phones with
Using the following national income accounting data, compute GDP, NDP, and NI. All figures are in billions. Round your answers to one decimal place. category value compensation of employees $ 196.2 U. S. exports of goods and services 19.8 Consumption of fixed capital 11.8 government purchases 59.4 taxes on production and imports 14.4 net private domestic investment 52.1 transfer payments 13.9 U. S. imports of goods and services 16.5 personal taxes Net foreign factor income Personal consumption expenditures Statistical discrepancy 40.5 2.2 219.1 0
What components of GDP, if any, would each of the following transactions affect? Explain. a) Jahzara spends $300 to buy her husband dinner at the finest restaurant in Boston. b) Nylah spends $1,200 on a new smartphone to use in her publishing business. The smartphone was built in China. c) Joseph spends $800 on a tablet to use in his editing business. He got last year's model on sale for a great price from a local manufacturer. d) GM builds $500 million worth of cars, but consumers only buy $470 million worth of them. e) The Federal Government sends your Grandmother a Social Security Check.
Which would be included in the category of investment spending in the calculation of GDP? O The purchase of stock in MacDonald's. The purchase of a new machine by Ford. O The selling of IBM corporate bonds. O The buying of shares of Janus mutual funds.
The table below shows the price of inputs and the price of outputs at each step in the production process of making a shirt. Assume that each of these steps takes place within the country. Inputs Value of output Cotton Farmer $0 $1.55 Fabric Maker $1.55 Sewing and Printing $3.65 $3.65 $18.20 Instructions: Round your answers to two decimal places. a. Using the standard expenditure method, the total contribution of this shirt to GDP is: b. If we use a value-added method (i.e., summing the value added by producers at each step of the production process, equal to the value of output minus the price of inputs), the contribution of this shirt to GDP is: c. If we mistakenly added the price of both intermediate inputs and final outputs without adjusting for value added, we would find that this shirt contributes: to GDP This overestimates the true contribution by: $
Which of the following are production activities that are included in GDP? Which are not? a. Mr. King performs the service of painting his own house instead of paying someone else to do it. This activity is GDP b. Mr. King paints houses for a living. This activity is GDP. c. Mrs. King earns income from parents by taking baby photos in her digital photography studio. This activity is GDP. d. Mrs. King takes digital photos of planets and stars as part of her astronomy hobby. This activity is GDP. e. E*Trade charges fees to process Internet orders for stock trades. This activity is GDP. f. Mr. Ho spends $10,000 on shares of stock via an Internet trade order. This activity is Mr. Ho pays a $10 brokerage fee. This activity is GDP g. Mrs. Ho receives an income support payment from the government. This activity is GDP. h. Ms. Chavez makes a $300 payment for an Internet-based course on stock trading. This activity is ▼ GDP. i. Mr. Langham sells a used laptop computer to his neighbour. This…
Harry and Ron purchase vegetables at a grocery store, but Ron also grows vegetables in his backyard. Regarding these two practices, which of the following statements is correct? a. Only Harry's grocery store purchases are included in GDP. b. Only Harry's and Ron's grocery store purchases are included in GDP. c. Harry's and Ron's grocery store purchases are included in GDP. The vegetables from Ron's backyard garden are included at their market value. d. Harry's and Ron's grocery store purchases are included in GDP. The vegetables from Ron's backyard garden are included at their market value, if Jim provides this information.
4. Which of the following transactions will be counted in the GDP a) Purchase of a used car. b) Income gained by an American citizen from a company he owns but which operates in Italy. c) Sale of a share of General Motors on the stock market. d) Your production of "home-made" bread for your family's use. e) The production of steel for use in automobile production, that remained in inventory at year's end. f) The sale of steel used in automobile production. g) You fix your neighbor's car in exchange for his helping you with your plumbing, but neither of you reports income to the IRS. h) You fix your neighbor's car in exchange for his helping you with your plumbing, and you report the value of these services to the IRS as income. i) Services of a prostitute in a jurisdiction where prostitution is illegal
Carl B. Cotton owns a 10-acre farm filled with cotton plants. Each year he hires a few workers to pick the cotton and he sells it to Candy's Cloth for $5,000. Candy uses the cotton to makes bolts of cloth that she sells for $9,000 to Ted's T-Shirts. Ted makes t-shirts with the cloth and sells the shirts to consumers for a total of $12,000. As a result of these transactions GDP increases by $ . The value added by Carl is $ . The value added by Candy is $ . The value added by Ted is $