In calculating GDP, which of the following is an example of investment? ☐ a) buying stock in a company b) hiring workers ☐ c) government buying a computer d) building a factory
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- Survey of Economics: GDP Accounting Worksheet Place the transactions below in their appropriate categories in the GDP and calculate the overall effect on the GDP of the United States. My cost for auto repairs and inspection. ($1,000) The Moon township buys rock salt to maintain the municipality’s roads in the month of February ($2,000) An RMU student goes to study in Ireland for a total cost of ($5,000) A U.S. citizen buys a refrigerator from General Electric (A US company). ($1800) A US retailer buys a new cash register ($1500) The cost of auto parts used to repair my car ($300) My total gasoline bill for a year ($1,500) A Chinese citizen buys a U.S. government bond ($5,000) A Landscaping firm’s gasoline costs for a year ($2,500): A School district buys new uniforms for its basketball team ($1100) I invest in a fidelity mutual fund ($2,000) My total food cost for a year ($8,000) An American bank loans a German citizen ($5,000) An American buys a sewing machine to produce clothing…Which of the following transactions counts towards Australia's GDP? (All activities take place in Australia.) a) Aiko buys a new fridge to replace an old one damaged in the flood. b) Boaz volunteers to clean up the mud after a flood. c) Centrelink (Australian government welfare services) makes a flood relief payment to residents of Lismore (a town in Australia). d) All of the above.Which of the following would be captured and included in the calculation of GDP? A) The cost of hospital stays. The rise in life expectancy over time. (C) Child care provided by a licensed day care center. Child care provided by a grandmother at home. A used car sale to the Brown family. A new car sale to the Brown family. (G) The greater variety of cheese available in supermarkets. The iron that goes into the steel that goes into a refrigerator bought by the Brown family.
- What does GDP stand for in economics?A) Gross Domestic ProfitB) Gross Domestic PriceC) Gross Domestic ProductD) Gross Domestic PercentageGross Domestic Product (GDP) in 2011 would include which of the following transactions? (A) The purchase of a 1993 Chevrolet pickup truck B) The purchase of 1,939 shares of General Motors stock (C) The purchase of a movie ticket to a screening of the classic 1939 movie Gone with the Wind (D) Margaret receiving a Social Security check of $1939 from the US government (E) Eli selling Max his old golf clubs for $193 2What components of GDP (consumption, investment, government spending, net exports), if any, would each of the following affect and how? Explain. b) A family buys a new television c) You treat your Saudi Arabian friend a nice dinner at hotel Serina. d) Bangladesh government allocates 500 crore taka for naval expenses. e) Your uncle lives in Canada and he sends $500 at every month. f) Transcom establishes a new factory at SAVAR
- Which of the following are included in GDP and which are not? If an item is included, state which GDP category it falls under (consumption, investment, government, trade balance) a) the cost of having your appendix removed b) buying a new car from a dealership c) buying a used car from your neighbor d) the lettuce sold to the sub shop that will go on your sandwich e) babysitting services at a licensed daycare provider f) babysitting services provided by your cousin g) a 2-year increase in life expectancyWhich of the following items is not part of the GDP calculation? Select one: a. Local citizens receiving medical care b. A person purchases a local car c. The government expands the highway between two main cities d. A number of unemployed citizens receive unemployment insurance benefitWhich of the following will be counted as part of the U.S.'s GDP for a given year? Select one: a. An All-Terrain Vehicle produced by Honda in Timmonsville, South Carolina b. Cleaning service by an illegal immigrant that is not reported to the IRS c. A whopper burger produced by Burger King in Tel Aviv, Israel d. Tools purchased by a professional plumber at Home Depot e. An antique car that is sold at an auction
- Which of the following is included in Gross Domestic Product (GDP)? Select one: a. the buying and selling of securities b. government transfer payments c. private transfer payments d. the sale of used goods e. None of thesea)A caterpillar tractor is made by a U.S firm producing in the United States. Is this production counted in GDP? b) A Toyota Avalon is made by a Japanese firm producing in the United States. Is this production counted in GDP? c) Brooks running shoes are made by a U.S firm producing in China. Is this production counted in GDP?Calculate the value added at each stage of production (ii) Calculate the contribution to GDP from the good
