Question

The U.S. government treats the goods produced by a firm in a year that are not sold in that year as increases in inventories and includes them in that year's GDP at market prices. In other words, the government assumes that the firm itself buys those goods for future resale. With this convention in mind, place a "yes" in a box if you think the statement is 100% true, place a "no" otherwise (without quotation marks and with no spaces). Ignore illegal goods and illegal activities altogether.

Any good produced domestically in a year will be included in that year's GDP.

Any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption

. Any good produced domestically and sold in a year will be included in that year's GDP

. Any good produced domestically and sold in a year will be included in that year's GDP, except those produced by firms that are not sold.

Any good sold in a year will be included in that year's GDP.

Any service sold in a year will be included in that year's GDP.

Any good that is not sold in a year will be excluded from that year's GDP.

If the U.S. government legalizes marijuana, the U.S. GDP will increase.

Answer 1

Any good produced domestically in a year will be included in that year's GDP - YES

Any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption - YES

Any good produced domestically and sold in a year will be included in that year's GDP - YES

Any good produced domestically and sold in a year will be included in that year's GDP, except those produced by firms that are not sold - NO [unsold goods will be added to GDP as increase in inventory]

Any good sold in a year will be included in that year's GDP - NO [It might have been sold from inventory of previous years(s)]

Any service sold in a year will be included in that year's GDP - YES [since a service cannot be added to Inventory as an unsold product can be]

Any good that is not sold in a year will be excluded from that year's GDP - NO [previously, illegal good was excluded from GDP and once it is legalized, its value will increase GDP]

If the U.S. government legalizes marijuana, the U.S. GDP will increase - YES