1. Products that would be used in calculating GDP include:

Question

a. Toys manufactured in China at a factory owned by a U.S. company
b. cars manufactured in Tennessee at a factory owned by a Japanese automobile company
c. plastic manufactured in Kentucky and sold to toy manufacturers around the world to make plastic toys
d. cotton cloth manufactured in India and sold to clothes makers in the United States
I think the answer is B, can someone tell me if this is right?

Answer 1

I agree with your answer of (B). However, (C) also counts because, although the plastic sold is a raw material and not a final product consumed here, it is an export. Exports count toward the GDP.

See http://www.investorwords.com/2153/GDP.html

Answer 2

Thank you, for your feedback. I just read another part of my economic book and B is definitely the answer.