Which goods would be included in the calculation of GDP?
A. toys made in China at a factory owned by a U.S. company
B. cars made in Tennessee at a factory owned by a Japanese car company
C. plastic made in Kentucky and sold to a toy maker in Ohio
D. cotton cloth made in India and sold to clothes makers in the United States
D
9 answers
oh darn I meant A
No
Neither A nor D. Read your text materials. You're on your own now.
http://www.investopedia.com/terms/g/gdp.asp
http://www.investopedia.com/terms/g/gdp.asp
In my textbook it gives these examples:
YES-Money paid by shoppers in New York for corn grown in Iowa
YES-Money paid by buyers in Indiana for cars made by a Japanese company at a factory in Kentucky
YES-Fees charged to patients by a dentist in Texas
NO-Money paid by a computer factory in New Mexico for computer chips produced in California
NO-Cost of processing wood pulp into paper at a factory in Maine
NO-Money paid by shoppers in Florida for jeans manufactured in Mexico by a company headquartered in North Carolina
YES-Money paid by shoppers in New York for corn grown in Iowa
YES-Money paid by buyers in Indiana for cars made by a Japanese company at a factory in Kentucky
YES-Fees charged to patients by a dentist in Texas
NO-Money paid by a computer factory in New Mexico for computer chips produced in California
NO-Cost of processing wood pulp into paper at a factory in Maine
NO-Money paid by shoppers in Florida for jeans manufactured in Mexico by a company headquartered in North Carolina
Read the definition of GDP that I posted, then see which of these four choices would be considered part of the Gross DOMESTIC Product.
I'm doing just that, thanks.
It is B and I am absolutely sure!
I think you are right this time. It pays to know what terms like GDP mean! Read carefully.
Yes it does. Thank you, Reed! :)
1 answer