1. Which of the following is not included in the consumption component of GDP?Group of answer choicesa. household purchases of newly constructed homesb. household purchases of medical carec. household purchases of appliancesd. household purchases of food sold in the US but produced abroad2. When Toyota produces cars in the United States this does count in GDP even though Toyota is not an American company.Group of answer choicesTrueFalse3. A firm produces 100 units of some good in the year 2017 but only manages to sell 90 of the units. When we calculate GDP for the year 2017 we will count the value of the 90 units sold and ignore the value of the 10 units not sold.Group of answer choicesTrueFalse

Question
Asked Sep 30, 2019
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1. Which of the following is not included in the consumption component of GDP?

Group of answer choices

a. household purchases of newly constructed homes

b. household purchases of medical care

c. household purchases of appliances

d. household purchases of food sold in the US but produced abroad

2. When Toyota produces cars in the United States this does count in GDP even though Toyota is not an American company.

Group of answer choices

True

False

3. A firm produces 100 units of some good in the year 2017 but only manages to sell 90 of the units. When we calculate GDP for the year 2017 we will count the value of the 90 units sold and ignore the value of the 10 units not sold.

Group of answer choices

True

False

 

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Expert Answer

Step 1

1. The consumption component of GDP includes consumption of services, consumption of durable goods and non-durable goods. But the purchase of home is included in the component of investment. Thus, option ‘a’ is correct.

Step 2
  1. The production of Toyota car, by Japanese company in United States will count in the GDP of United...

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