Question

2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Included Excluded Scenario Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to a college student on December 24. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 21, 2020. It sells the latte to a customer immediately. Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 10, 2020. Calculo imports the calculator into the United States on May 20, 2020. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 13, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.) An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021.

Answer 1

2. Activities included (and not included) in the calculation ofGDP The gross domestic product (GDP) of the United States is defined as the MARKET VALUE OF all ALL FINAL GOODS AND SERVICES PRODUCED a given period of time. WITHIN THE UNITED STATES in Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2020. 2020 GDP Included Excluded Scenario Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2020. It sells the table to a college student on December 24. Awake Cafe, a U.S. coffee company, produces a latte at its location in Minneapolis on January 21, 2020. It sells the latte to a customer immediately. Calculo, a U.S. electronics company, produces a calculator at a plant in Indonesia on March 10, 2020. Calculo imports the calculator into the United States on May 20, 2020. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 13, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.) An accountant starts a client's 2020 tax return on April 14, 2021, finishing it just before midnight on April 15, 2021.