1. Identify whether the following items are officially included in 2019 GDP or Not. Give specific reasons if they are not included in GDP.   a. You purchased a home in 2019 that was built in 2015.   b. Firestone sells $2 million worth of tires to General Motors.   c. John makes chain-link belts and necklaces and sells them at a local flea market for cash to avoid paying taxes. d. The value of treasury notes sold by federal government in 2019. e. The profit earned in 2019 from selling a stock that you purchased in 2010. f. The value of a motor that is used in the production of a lawn mower in 2019. g. The value of a motorcycle produced in the United States in 2019 and exported to Japan. h. The value of a laser printer manufactured in 2019 but not sold in 2019.

Adam lives in California and, after graduating college, opened up an ice cream business on the Venice Beach boardwalk. Which items are not counted in GDP? Select all that apply and explain why each of the items you selected is not counted in GDP. a. Adam purchases a new sub-zero refrigerator for his ice cream shop. b. The neighborhood kids broke Adam's window at the ice cream shop during a baseball game. Adam replaces the window. c. After a successful summer, Adam travels to Egypt to visit the Red Sea. d. Adam sells his used accounting textbook to his best friend Billy. e. Adam spends a Saturday afternoon mowing his elderly neighbor's lawn. He earns $100 cash that day.

Which of the following transactions would be included in GDP? a. Abeer buys a newly constructed house. b. Zahra receives a tax refund of $500. c. Abdul buys $5000 worth of stock in Microsoft. d. Ahmed buys a used book for $5 at a garage sale.

Why do we exclude intermediate goods from the calculation of GDP?     A.) Intermediate goods do not add value     B.) Intermediate goods are not market priced     C.) Because intermediate goods are used by producers not consumers     D.) To avoid double counting

Gross Domestic Product What would happen to GDP when  a. Parents have a child  b. You hire a company to mow the lawn  c. You have your child mow the lawn  d. You bake cookies in your kitchen and sell them to friends  e. Your cookies are delicious so you open your own cookie store  f. Businesses have a pessimistic outlook on the future  g. Foreigners boycott American goods  h. Consumers experiance an increase in wealth when property values increase

Which of the following are production activities that are included in GDP? Which are not? a. Mr. King performs the service of painting his own house instead of paying someone else to do it. This activity is GDP b. Mr. King paints houses for a living. This activity is GDP. c. Mrs. King earns income from parents by taking baby photos in her digital photography studio. This activity is GDP. d. Mrs. King takes digital photos of planets and stars as part of her astronomy hobby. This activity is GDP. e. E*Trade charges fees to process Internet orders for stock trades. This activity is GDP. f. Mr. Ho spends $10,000 on shares of stock via an Internet trade order. This activity is Mr. Ho pays a $10 brokerage fee. This activity is GDP g. Mrs. Ho receives an income support payment from the government. This activity is GDP. h. Ms. Chavez makes a $300 payment for an Internet-based course on stock trading. This activity is ▼ GDP. i. Mr. Langham sells a used laptop computer to his neighbour. This…

How does this impact GDP?

Harry and Ron purchase vegetables at a grocery store, but Ron also grows vegetables in his backyard. Regarding these two practices, which of the following statements is correct?     a. Only Harry's grocery store purchases are included in GDP.     b. Only Harry's and Ron's grocery store purchases are included in GDP.     c. Harry's and Ron's grocery store purchases are included in GDP. The vegetables from Ron's backyard garden are included at their market value.     d. Harry's and Ron's grocery store purchases are included in GDP. The vegetables from Ron's backyard garden are included at their market value, if Jim provides this information.

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In 2020, Delorse Greenlee purchased a 1892 painting by Paul Cezanne for $250 million. She also paid a 1 percent commission to the auction house that sold the painting. What was the contribution of these transactions to GDP in the year 2020? Select one: a. $2.5 million b. $252.5 million C. $25 million d. $0