Explain which of the following goods and services are included and which are not included in U.S. GDP:
a. Jacinda buys termite spray at her local Home Depot.
b. Jacinda uses the termite spray she purchased at her local Home Depot to treat her house for termites.
c. Arturo hires a pest control company to treat his house for termites.
d. Jeannine sells her 1969 Pontiac GTO to a local car museum.
e. Simon purchases a new John Deere tractor to use on his farm.
f. Ravi purchases 2 round-trip airline tickets between Chicago and Las Vegas.
a. If the termite spray is produced in the United States, this would be included in U.S. GDP. If the termite spray is imported, this would not be included in U.S. GDP.
b. The value of work that someone performs around her own home is not included in GDP.
c. Hiring a company to perform work at your home is included in GDP.
d. A 1969 vehicle is not current production for the year, so is not included in current GDP.
e. The purchase of a new tractor produced in the United States is included in U.S. GDP.
f. The purchase of airline tickets to be used within the United States is included in U.S. GDP.
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Indicate whether each of the following transactions represents the purchase of a final good
1. The purchase of tires from Bridgestone by an automobile manufacturer? 2. The purchase of two new elementary school buildings by the state government? 3. The purchase of french wine by a US consumer? 4. The purchase of a new machine tool by the Ford Motor company?
A worker can begin receiving benefits as early as age 58.
A. True B. False C. Uncertain
Suppose Jim and Tom can both produce baseball bats. If Jim's opportunity cost of producing baseball bats is lower than Tom's opportunity cost of producing baseball bats, then
a. Tom must have an absolute advantage in the production of baseball bats. b. Jim must have an absolute advantage in the production of baseball bats. c. Tom has a comparative advantage in the production of baseball bats. d. Jim has a comparative advantage in the production of baseball bats.
According to the negative income tax, the breakeven income level for a program whose tax credit is $3,000 and whose tax rate is 30 percent would be
A. $4,500. B. $9,000. C. $10,000. D. $6,000.