In the table below, indicate whether the item is included or excluded from the calculation of...

In the table below, indicate whether the item is included or excluded from the calculation of GDP. Some items may count negatively. Explain your answer, and in your explanation, if the item is included in GDP, please state whether the item counts in consumer expenditures (C), investment (I), government spending (G) or Net Exports (NX).

Item	Include/Exclude And Where (C, I, G, NX)	Reason for Inclusion/Exclusion
Jason McNamara’s purchase of a 1958 Edsel produced by Ford motor company from Mary Montgomery.
The salary of a Boise City policewoman paid this year.
100 pounds of lentils produced in Idaho this year but sold to Canadians
Newly issued WeWork stock purchased on the New York Stock Exchange
The stain purchased by Alicia Garza to refurbish her deck.
The house purchased by Troy Emge in Harris Ranch (Boise, ID) that was just completed.
Protective coveralls produced in the U.S. this year sold to U.S. hospitals for use by nurses treating COVID-19 patients
The Macroeconomics textbook published by Cengage this year that did not sell.
The value of the babysitting services provided by Kelly Chen when she stays home to take care of her new daughter.
The marijuana produced by a grower in Idaho.

B. In 100-300 words, explain at least 3 limitations of the use of GDP as a measure of economic well-being. Please label your first explanation with an “a”, your second explanation with a “b”, and your third explanation with a “c”.

Solutions

Expert Solution

The 1968 Edsal will not be counted as part of GDP for current year. This has already been counted in GDP for the year it was sold to Mary Montgomery. Counting this in GDP will just result in double counting since this car is not produced in the current year. So we cannot count this as consumption expense for this year. Only if some value was added on the resale, then we could have added this to GDP.

The salaries paid to police man this year is part of current year GDP because they recieve this payment for the service they have provided this year. This is income component of GDP and will be added to GDP when we measure through income approach

The lentills have surely been produced withing the boundaries of the nation in the current year. So this are part of the GDP of the nation. This is sold to Canada and so is part of exports of the nation.

Newly issued stocks brought from the NYSE is an investment made this year. So this will be counted as part of GDP under I.

The newly brought stain is made this year and brought freshly by Alicia. This is a small investment towards raw material to refurbish her deck. So this is part of GDP under I category.

This is also included in GDP as its produced and brought this year. Buying a new house is a residential fixed invetsment.

Protective coveralls made in US is surely a part of their GDP. Since this are brought by the hospital for protection and continous service without hindrance, this should be considered a business investment made by the hospital.

As the book by cengage was made this year, it will be counted in as part of this year's gdp. Unsold items are treated as if they are brought by the producers to be sold in the next year. This is known an inventory investment and is counted as GDP under I category

Unpaid services are not counted in part of GDP. Such services require imputations which are based on rough estimates. Such imputations are not included.

In Idaho, marijuana is illegal. So the amount of marijuana produced is part of the black market. This is not added to be part of GDP.

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

Indicate whether the following information is included on the 2020 1040 tax return as Gross Income or excluded from the 2020 1040 tax return. Indicate the specific amount included or excluded.

Indicate whether the following information is included on the 2020 1040 tax return as Gross Income or excluded from the 2020 1040 tax return. Indicate the specific amount included or excluded.Item$ Included as Gross Income$ Excluded from Gross IncomeEarned $45,000 of gross wages from an employer. Received a gift from a grandparent of $10,000 cash. Received a $5,000 signing bonus from an employer. Received child support in the amount of $12,000. Employer-paid health insurance premiums amounted to $15,000 for an...

For each item listed below, indicate whether it involves a: a. permanent difference.

For each item listed below, indicate whether it involves a:a. permanent difference.b. temporary difference that will result in future deductible amounts (giving rise to deferred tax assets).c. temporary difference that will result in future taxable amounts (giving rise to deferred tax liabilities).____ 1. Rent is collected in advance from a tenant. Rent is taxable when received.____ 2. Warranty costs are accrued at the time of sale for accounting purposes, but are not deductible until paid for income tax purposes.____ 3....

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...

For each item below, indicate whether a debit (DR) or a credit (CR) applies. _____

For each item below, indicate whether a debit (DR) or a credit (CR) applies. _____ a. Decrease in Accounts Payable _____ b. Decrease in Land _____ c. Increase in Retained Earnings _____ d. Increase in Unearned Revenue _____ e. Decrease in Notes Payable _____ f. Increase in Building _____ g. Increase in Wages Expense _____ h. Decrease in Office Supplies _____ i. Increase in Service Revenue _____ j. Increase in Common Stock

II. Indicate whether the following item is a dedection ABOVE THE LINE(A), BELOW THE LINE(B) or...

II. Indicate whether the following item is a dedection ABOVE THE LINE(A), BELOW THE LINE(B) or NOT DEDUCTIBLE(N). 1 ) UNION DUES 2 ) UNIFORM 3 ) TRAVEL 4 ) STUDENT LOAN INTEREST 5 ) SEARS CARD INTEREST 6 ) SALES TAX 7 ) SAFETY DEPOSIT FEE 8 ) REVOLVING CARD INTEREST 9 ) REAL PROPERTY TAXES 10 ) PROFESSIONAL MAGAZINES 11 ) PRIVATE HEALTH PLAN FOR SELF EMPLOYED 12 ) NEW ACCOUNTANT JOB HUNTING EXPENSE 13 ) MORTGAGE INTEREST...

1. For each item below, indicate whether it involves: (1) A temporary difference that will result...

1. For each item below, indicate whether it involves: (1) A temporary difference that will result in future deductible amounts and, therefore, will usually give rise to a deferred income tax asset. (2) A temporary difference that will result in future taxable amounts and, therefore, will usually give rise to a deferred income tax liability. Use the appropriate number to indicate your answer for each. Answer (a) For some assets, straight-line depreciation is used for tax purposes while double-declining balance...

1. Which of the following items would be excluded from the calculation of taxable income by...

1. Which of the following items would be excluded from the calculation of taxable income by an auditor employing the bank-deposit audit method? A.. Existing funds from wages in the taxpayer's bank account. B.. A deposit of $125 in proceeds from the taxpayer's garage sale. C.. A deposit of a $25 birthday gift from the taxpayer's grandmother. D.. A deposit of $20 from the taxpayer's lottery winnings 2. Which of the following is typical of a field audit, but not...

Listed below are ten separate situations. For each item indicate whether the difference is (1) temporary...

Listed below are ten separate situations. For each item indicate whether the difference is (1) temporary creating a deferred tax asset (DTA) or a deferred tax liability (DTL) or (2) permanent by marking an X in the appropriate column. ITEM Temporary - DTA Temporary - DTL PERMANENT Pension fund contributions are less than pension expense for the current year, resulting in a pension liability on the company’s balance sheet. Dividend revenue recognized for accounting while a portion is deductible for...

Listed below are costs found in various organizations. Required: For each cost item, indicate whether it...

Listed below are costs found in various organizations. Required: For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it is a direct cost or an indirect cost with respect to units of product. Manufacturing Cost Cost Item Variable or Fixed Selling Cost Admin....

For each item listed below, indicate whether you feel it relates to financial or managerial accounting....

For each item listed below, indicate whether you feel it relates to financial or managerial accounting. Explain your reasoning behind your answer for each item. a. Projected net income for next quarter by division b. Defective goods produced as a percentage of all goods produced c. Income statement for the most current year, prepared in accordance with U.S. GAAP. d. Monthly sales broken down by geographic region e. Production department budget for the next quarter. f. Balance sheet at the...

Subjects