EBK ESSENTIALS OF ECONOMICS
7th Edition
ISBN: 8220102452107
Author: Mankiw
Publisher: CENGAGE L
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Chapter 15, Problem 3QCMC
To determine
The components included in the
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Which of the following transactions should or should not be counted in GDP?
Answer Yes or No and briefly explain your answer. Answers without explanation will not be considered
in grading, even if they are correct.
a. You buy a pair of new cowboy boots on a trip to Texas
b. You buy a pair of vintage cowboy boots from your cousin in El Paso
c. A cat burglar sells $10,000 of stolen jewelry to a fence
d. Amazon issues $1 billion worth of new shares
e. GM purchases $100 million worth of tires from Firestone
f. A private company builds a new road in Memphis Y
g. Stay-at-home parents provide an estimated $500 million of child care services
Question 34
Which of the following would be not be included in the GDP of the U.S.? There is more than one
correct answer to this question. You must mark all of the correct answers to receive full credit for
this question.
Your neighbor sells a bicyde that he purchased two years ago.
O LG Chem (a Korean firm) makes batteries in the u.S. and sells them to General Motors (a U.S. firm) in the U.S.
o Tesla (a U.S. firm) makes a car in China and sells it there.
Honda (a Japanese firm) produces cars in the U.S. and sells them here.
O Pízer (a U.S. company) makes a vaccine in Germany and sells it in Sweden.
Question 35
Assume there is a reduced time preference to spend now. What change would be expected in the
market for loanable funds?
The supply of loanable funds would increase.
O The demand for loanable funds would decrease.
o The demand for loanable funds would increase.
o The supply of loanable funds would decrease.
Which of the following transactions or activities would be counted in your country’s GDP? Explain your answers.
A transportation company acquires a fleet of second-hand vehicles.
The same transportation company acquires 1.000 gallons of gas from a foreign company deducted from the net export component of GDP.
You buy 10 short-term government bonds.
A mining company acquires new government licenses to drill in land the company already owns.
You pay for a new haircut at your local hairdresser.
Foreign residents buy a bundle of your country’s food specialties on an online retail site.
Your parents spend a whole day cooking meals to be handed out to their poorer neighbors.
The local government acquires furniture for newly built schools.
Two telecommunications companies merge.
A non-profit organization buys an apartment to lodge their headquarters.
Chapter 15 Solutions
EBK ESSENTIALS OF ECONOMICS
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QR
Ch. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1QCMCCh. 15 - Prob. 2QCMCCh. 15 - Prob. 3QCMCCh. 15 - Prob. 4QCMCCh. 15 - Prob. 5QCMCCh. 15 - Prob. 6QCMCCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 8PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PA
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