Tuesday, April 14, 2009

MacroEconomics: Choose 1 example of Gross Domestic Product (GDP) in USA?

Which of the following activities would be most likely included in the calculation of GDP for the United States?





A) Dell produces computers at a manufacturing facility in China.


B) Goodyear Tire Company manufactures 250,000 tires. The tires are to be sold to General Motors, which will put them on new automobiles.


C) Toyota, a leading Japanese automobile company, produces 25,000 Camrys at its Kentucky plant and exports them to Japan.


D) In his garage, Richard makes a canoe as a wedding gift for his daughter. Similar canoes sell for $1,500 in a local river sports shop.

MacroEconomics: Choose 1 example of Gross Domestic Product (GDP) in USA?
A.





GDP doesn%26#039;t figure in foreign goods produced on American soil, technically. It does measure the output of American firms in foreign countries.





In D, he made it as a gift, so it doesn%26#039;t count.





In B, it isn%26#039;t a final product unless they sold them directly to consumers, rather than to GM.
Reply:i pick C





because even if it came from a foreign company,it was still being produced in our country and therefore becomes a part of our GDP.



c++

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