Back to Assignment Attempts: 2. Activities included (and not included) in the ca
ID: 1144828 • Letter: B
Question
Back to Assignment Attempts: 2. Activities included (and not included) in the calculation ofGDP Keep the Highest: /2 The gross domestic product (GDP) of the United States is defined as the market value of 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 Excluded Scenario Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2017. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2017. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.) You chop down a cherry tree on your property in California and make a dining room table in 2017. A similar table sells for $800 in a local furniture store Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 11, 2017. Roadway Motors imports the convertible into the United States on May 29, 2017. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 6, 2017. It sells the latte to a customer immediately. Sofaland, a Swedish furniture company, proces a table at a plant in Virginia on December 14, 2017. It sells the table to a college student on December 24 Grade It Now Save & Continue Continue without savingExplanation / Answer
GDP is the final value of all goods and services produced in a country in a given time period
1.Not included since the corn syrup is not a final good.It acts as a raw material in the cereal production.Therefore,it is not included.
2.Not included since it a good for self consumption and there is not financial transaction associated with it.
3.It is included in the GDP.It is a part of imports.
4. Included in GDP.It is a final good.
5.Included.It will be a part of US GDP.
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