U.S. GDP measures the total monetary value of all final goods and services produced within the country in a given time period. To identify which option is excluded from U.S. GDP, we need to determine which involves an intermediate good or a secondhand transaction, or anything that is not in the current production cycle.
Let's examine the options:
a. cotton purchased by Lee Jeans - This represents an intermediate good since it is used by Lee Jeans to create a final product. The value added will be counted in the GDP when the final product (jeans) is sold.
b. lawn care services purchased by a homeowner - This is a final service and would be included in GDP.
c. lawyer services purchased by a home buyer - This is also a final service and would be included in GDP.
d. the purchase of a new Mazda produced in Illinois - This is a final good produced domestically and is included in GDP.
e. a new bridge purchased by the state of Texas - This is a public investment in infrastructure and is included in GDP.
Concluding the analysis, the correct answer is:
a. cotton purchased by Lee Jeans
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