1: Graincorp, and american agricultural company, produces corn syrup at a plant

Question

1: Graincorp, and american agricultural company, produces corn syrup at a plant in Iowa on September 5, 2007. It sells the corn syrup to crunchy's for use in the production of cereal.

2: Sofaland, a Swedfish furniture company, produces a table at a plant in Virgina on April 5, 2007. it sells the table to a college student on september 2 , 2007.

3: Tasty's , an american fast food company, produces a hamburger at one of its many St.louis loacation on January 6, 2007. It sells the hamburger to a customer that same day.

4: I chop down a cherry tree on my property in California and make a dining room table in 2007. A similar table sells for $800 in a local furniture store.

5: Calculo, an American electronics company, produces a calculator at a plant in Indonesia on March 5, 2007. Calculo imports the calculator into the united states on May 14, 2007.

Explanation / Answer

1. Is not included in GDP. GDP calculations include only the FINAL goods and services produced in a country during a given period. Since the corn syrup is used in the production of cereal, it is not a final good. 2. Even though it is a foreign owned company, GDP would include this since it is produced in Virginia. 3. This would be counted in the GDP, it is a final good produced domestically and sold in the same time period 4. The table that you made would not be counted in GDP. However the similar table, assuming it was produced domestically would be counted 5. The final sale of the calculator would be counted in GDP, however it would be subtracted from GDP as an import.

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