Which of these is Counted in GDP and Which of These is NOT COUNTED in GDP
Question 1
1.
KEY!
C=Consumption Spending
I=Investment Spending
G=Government Spending
NX=Net Exports
NC=Not Counted in GDP
Question 2
2.
Question 3
3.
Question 4
4.
Question 5
5.
Question 6
6.
We count only the final price of a good or service in GDP? Why?
Question 7
7.
A purely financial transaction will not be counted in GDP? Why?
Question 8
8.
When a home-owner does home-improvement work, the labor is not counted in GDP? Why?
Which of these is Counted in GDP? (Check all that apply.) (Hint: There are 4 of them)
A monthly check received by an economics student who has been granted a government scholarship.
A farmer's purchase of a new tractor
A plumber's purchase of a two-year-old used truck
Cashing a U.S. government bond
The services of a mechanic in fixing the radiator in his own car
A Social Security check from the government to a retired store clerk
An increase in business inventories
The government's purchase of a new submarine for the Navy
A barber's income from cutting hair
Income received from the sale of Nike Stock
Which of these is Counted in GDP and part of C? (Check all that apply.) (Hint: There are 4)
You Spend $7 at the movies
A family pays a contractor $200k for a house he built them this year
A family pays $75k for a house built three years ago
An accountant pays a tailor $175 to sew a suit for her
The government increases its defense expenditures by $1 billion
The government makes a $300 Social Security payment to a retired person
You buy General Motors Corp. stock for $1k in the stock market
At the end of the year, a flour-milling firm finds that its inventories of grain and flour are $10k above the amounts of its inventories at the beginning of the year
A homemaker works hard caring for her spouse and two children
Ford Motor Co. buys new auto-making robots
You pay $300 a month to rent an apartment
Apple Computers builds a new factory in the US
RJ Reynolds Co. buys control of Nabisco
You buy a new Toyota that was made in Japan.
You pay tuition to attend college.
Which of these is Counted in GDP and part of I? (Check all that apply.) (Hint: There are 4)
A family pays a contractor $200k for a house he built them this year
A family pays $75k for a house built three years ago
The government increases its defense expenditures by $1 billion
The government makes a $300 Social Security payment to a retired person
You buy General Motors Corp. stock for $1k in the stock market
At the end of the year, a flour-milling firm finds that its inventories of grain and flour are $10k above the amounts of its inventories at the beginning of the year
A homemaker works hard caring for her spouse and two children
Ford Motor Co. buys new auto-making robots
Apple Computers builds a new factory in the US
RJ Reynolds Co. buys control of Nabisco
You buy a new Toyota that was made in Japan.
Which of these is Counted in GDP and part of G? (Check all that apply.) (Hint: There is only 1)
A family pays $75k for a house built three years ago
The government increases its defense expenditures by $1 billion
The government makes a $300 Social Security payment to a retired person
You buy General Motors Corp. stock for $1k in the stock market
A homemaker works hard caring for her spouse and two children
RJ Reynolds Co. buys control of Nabisco
You buy a new Toyota that was made in Japan.
Which of these is Counted in GDP and part of NX? (Check all that apply.) (Hint: There is only 1)
A family pays $75k for a house built three years ago
The government makes a $300 Social Security payment to a retired person
You buy General Motors Corp. stock for $1k in the stock market
A homemaker works hard caring for her spouse and two children