The gross domestic product (GDP) of the United States is defined as the 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 2018. 2018 GDP Scenario Included Excluded Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.) Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 27, 2018. Roadway Motors imports the convertible into the United States on May 18, 2018. The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2018. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 14, 2018. It sells the car at a dealership in Dallas on February 12, 2018. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2018. A family buys the sedan on December 24.
The gross domestic product (GDP) of the United States is defined as the 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 2018. 2018 GDP Scenario Included Excluded Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.) Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 27, 2018. Roadway Motors imports the convertible into the United States on May 18, 2018. The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2018. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 14, 2018. It sells the car at a dealership in Dallas on February 12, 2018. Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2018. A family buys the sedan on December 24.
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Taking The Nation's Economic Pulse
Section: Chapter Questions
Problem 1CQ
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Transcribed Image Text:The gross domestic product (GDP) of the United States is defined as the
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
2018.
2018 GDP
Scenario
Included
Excluded
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 25, 2018. It sells the set of
tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2018.
(Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of
production of the two-door coupe on GDP.)
Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 27, 2018.
Roadway Motors imports the convertible into the United States on May 18, 2018.
The Jones family buys an antique silver platter at an auction in upstate New York on March 27, 2018.
Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 14,
2018. It sells the car at a dealership in Dallas on February 12, 2018.
Fastlane, a Japanese automobile company, produces a sedan at a plant in Indiana on December 9, 2018. A family buys
the sedan on December 24.
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