Options for the first part are \"wholesale cost of\", \"market value of\", and \
ID: 1138610 • Letter: O
Question
Options for the first part are "wholesale cost of", "market value of", and "cost of producing"
Options for the second part are "final goods and services consumed", "final goods and services produced", and "final and intermediate goods and services produced"
Options for the third part are "within the United States", "U.S.-owned companies", and "by U.S. citizens"
1. 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 2017. 2017 GDP Included Scenario Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 12, 2017. An elementary school student buys the chocolate bar on December 24. An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018. Treetopplers, a U.S. lumber company, produces wood at a plant in Oregon on September 19, 2017. 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 2017. (Note: Focus exclusively on whether production of the wood increases GDP directly, and ignore the effect of production of the new house on GDP.) Excluded Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 9, 2017. It sells the hamburger to a customer that same day. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 17, 2017 Roadway Motors imports the convertible into the United States on May 21, 2017.Explanation / Answer
1) market value of
2) final goods and services produced
3) within the United States
4) i) Included
Chocolate bars are produced within US
ii) Excluded
iii) Excluded
Production of raw material or input is not counted in GDP.
iv) Included
Hamburgers are produced in the US and consumed in the US.
v) Excluded
Convertible produced in foreign country.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.