Question

Question 16 1 pts In 2018, lan (1) purchased a 2009 Ford Fiesta from his neighbor for his son, (2) purchased a 2010 "one-owner" Toyota Corolla for his wife, (3) bought a new 2018 Ford Mustang for himself, and (4) sold his 2003 Dodge Caravan. Which, if any, of these transactions will be included in GDP in 2018? All four transactions O The purchase of the Toyota o Only the purchase of the Ford Mustang All three purchases but not the sale Question 17 1 pts If Nike, an American corporation, assembles sneakers in Thailand, the value of the labor that goes into the sneaker assembly would: count as part of U.S. GDP since it is a U.S.corporation add to neither U.S. GDP nor Thailand's GDP add to Thailand's GDP but not to U.S. GDP O count for both Thailand's GDP and U.S. GDP.

Answer 1

Question 16

Gross domestic product of a year includes the final goods and services produced in that year within the domestic territory of the country.

2009 Ford Fiesta, 2010 Toyota Corolla, and 2003 Dodge Caravan are not produced in 2018. So, they would not be included in GDP in 2018.

2018 Ford Mustang is produced in 2018. So, it will be included in GDP in 2018.

Hence, the correct answer is the option (c) [Only the purchase of the Ford Mustang].

Question 17

The sneakers are produced in Thailand. So, value paid to factors of production related to production of sneakers would be included in GDP of Thailand.

So,

The value of the labor that goes into the sneaker assembly would add to Thailand's GDP but not the US GDP.

Hence, the correct answer is the option (c) [Add to Thailand's GDP but not the US GDP].