ECON Indicate whether the following transactions would be included in GDP. If they are included, indicate...

ECON

Indicate whether the following transactions would be included in GDP. If they are included, indicate which component (consumption, investment, government consumption and gross investment, or net exports) of GDP would be affected.

a. A Czech student attending school in Florida takes a summer job as a lifeguard.

b. A New York company buys welding equipment from a St. Louis firm to help it build jet fighters.

c. The IRS purchases a new computer from the GATS computer company (an American-owned business producing and operating in Germany) that will allow it to better detect income tax evasion.

Solutions

Expert Solution

a,b option affect GDP.please find the following explanation:

a)first one is considered as production of consumption services (life saving)in GDP.

b) second one considered as an investment expenditure in GDP.

c)This one is considered as government gross investment in Gross National Product (GNP)but does not affect GDP.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

Explain whether or not each of the following transactions would be included in GDP for 2019.

Explain whether or not each of the following transactions would be included in GDP for 2019. If yes. state which expenditure category it would be included in, if no, explain why not. (a) (2 points) In 2019, the Smith family purchases a new house that was built in 2019. (b) (2 points) In 2019, the Jones family purchases a house that was built in 2001. (c) (2 points) In 2019, a construction company purchases windows to put in the Smith family home that was built...

Which of the following transactions would not be included in GDP?

Which of the following transactions would not be included in GDP? A. Nancy mows her own lawn B. Gordon hires a painter to make a sign for his business. C. Ruth buys paint for her house. D. The Commonwealth of Massachusetts has snow removed on interstate highways.

Which of the following transactions, if it was included in the calculation of GDP, would lead...

Which of the following transactions, if it was included in the calculation of GDP, would lead to an overstated GDP figure? A) buying a new set of golf clubs B) the purchase of a special fabric adhesive by a furniture company in California C) buying asparagus for dinner, even though it is really expensive D) hiring a babysitter and paying him or her under the table

Which of the following transactions would be included in 2019 U.S. GDP?

The Expenditure Components of Nominal GDP Which of the following transactions would be included in 2019 U.S. GDP? For those transactions which are included in U.S. GDP, indicate whether they should count as part of C, I, G, or NX. Assume that all buyers and sellers are domestic unless otherwise stated. A. A household purchases a home in 2019 that was constructed and available for sale in 2018. B. A household purchases 100 shares of Apple stock in 2019. C. An increase in General...

Which of the following transactions would NOT be included in the GDP calculation of a country?...

Which of the following transactions would NOT be included in the GDP calculation of a country? A.supplemental income paid by the government to a disabled person B.the value of an increase in unsold inventory of a company C.salary of a soldier in a country's army D.price of a new office building

3. Which of the following transactions would be included in GDP for the third and fourth...

3. Which of the following transactions would be included in GDP for the third and fourth quarter of 2016? (x) In October 2016, Archie sells his collection of old baseball cards to a baseball card dealer. (y) In November 2016, Barry eats potatoes that he harvested from his backyard garden in September 2016. (z) In December 2016, Cathy visits her dentist to take care of a bothersome toothache. She pays for the visit in January 2017. A. (x), (y) and...

Which of the following transactions would be included in GDP for 2013? a. In February 2013,...

Which of the following transactions would be included in GDP for 2013? a. In February 2013, Amanda sold a 1996 Honda Accord to Isabella. b. In February 2013, Amanda bought a ticket to visit a zoo in Florida. c. In early November 2013, Isabella eats onions that she harvested from her backyard garden in late October 2013. d. All of the above are correct.

Which of the following transactions would be included in this year's GDP for thet United States?

Which of the following transactions would be included in this year's GDP for thet United States? a) Jennifer buys a rug imported from Mexico. b) Melissa buys stock in an American textile company. c) Jennifer purchases a table over the Internet from a North Carolina furniture manufacturer. d) Melissa purchases a table over the Internet from a Mexican manufacturer.

11. Which one of the following transactions would be included in GDP? a. Adam pays $50...

11. Which one of the following transactions would be included in GDP? a. Adam pays $50 for a used blender at a neighborhood garage sale. b. Elisa donates $500 to the Southwestern College scholarship fund. c. Emma pays $500 to fix a damaged tail light on her car. d. Mark pays $5,000 to purchase 100 shares of McDonald’s stock. 12. An RV firm purchases $425,000 worth of raw materials and buys $275,000 of used materials and stock dividends of $150,000,...

Which of the following transactions would be included in the official calculation of GDP under the expenditure method?

Which of the following transactions would be included in the official calculation of GDP under the expenditure method? You make cookies to give as a gift to your parents. You buy a new iPod for listening to music. You illegally download music off the Internet to put on your new iPod. Bridgestone sells $2 million worth of tyres to General Motors Holden. A student buys a used textbook at the bookstore.

Subjects