Classify the following goods according to whether or not they would be included
ID: 1220618 • Letter: C
Question
Classify the following goods according to whether or not they would be included in calculating the GDP for the United All goods should be placed. if a country is not specified, you can assume the action is performed in the United States. Included in the GDP of the U.S. NOT Included in the GDP of the U.S. Ocean Spray purchases plastic to make bottles Resale of used textbooks to college students GM's assembly and sale of cars in Mexico Honda's assembly and sale of cars in the U.S Old Navy purchases mannequins to display clothes Sale of wheat to Mrs. Baird's Bakery Previous check Answer 0 Next Ext H HintExplanation / Answer
GDP (Gross Domestic Product) implies to the market value of the final goods and services produced during a year within the domestic borders. Items that are not included in GDP are as follows:
1. Income from illegal activities, like gambling, smuggling.
2. Black money or income not reflected in the account books of the producers.
3. Transfer payments, like scholarships or old age pensions.
4. Income from monetary transactions, like from shares and debentures.
5. Value of second hand goods.
In your case, the items included in the GDP, like purchasing of plastic, Honda's assembly and sale of cars in U.S. are all correct. The item that is selling of wheat is not incuded as it is not about the production of wheat. These items are directly produced in the nation.
The items that are not included in the GDP, like resaling of old books, GM's assembly and sale of cars in Mexico and old navy purchases manequinnes to display clothes are correct. These items are second hand goods. Moreover, GM's assembly and sale of cars is outside U.S. borders.