
ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
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i am having trouble with this macro econ question 1

Transcribed Image Text:**Activities Included (and Not Included) in the Calculation of GDP**
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.
| **Scenario** | **2018 GDP** | Included | Excluded |
|--------------|--------------|----------|----------|
| Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 14, 2018. It sells the hamburger to a customer that same day. | | O | O |
| Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 27, 2018. Athleticus imports the pair of sneakers into the United States on May 18, 2018. | | O | O |
| 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.) | | O | O |
| Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 9, 2018. It sells the table to a college student on December 24. | | O | O |
| An accountant starts a client's 2018 tax return on April 14, 2019, finishing it just before midnight on April 15, 2019. | | O | O |
**Explanation:**
1. **Tasty's Hamburger (U.S. fast-food company)**: Since the hamburger is produced and sold within the U.S. in 2018, it will be included in the GDP.
2. **Athleticus Sneakers**: The sneakers are produced in Vietnam and then imported to the U.S.; hence, they are excluded from the U.S. GDP as only products produced domestically are included.
3. **Rotato Tires**: The tires are produced and sold within the U.S. in 201
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