Question

1 question 2 parts

part 1: If the value of any of the following is included in 2020 GDP for the United States, enter "yes" in the answer box. Otherwise, enter "no" in the box (without quotation marks and no spaces). The answers are not case-sensitive. Assume that the government can observe and measure all these transactions.

1.We imported $10 million worth of Italian wine in 2020.

2.We exported $20 million worth of tomatoes to Europe in 2020

3.You fixed your uncle's neighbor's brother's ex-wife's garage door for $75 in 2020.

4.Dell Corporation produced some computers in in 2020 but it could not sell them.

5.GM sold some cars in 2020 that it had produced in 2019.

6.Dad sold his old lawn mower in a garage sale in 2020.

7.The cost of a freeway overpass built by the government in 2020.

8.The salaries paid to teachers in public schools in 2020.

Part 2 :

The U.S. government treats the goods produced by a firm in a year that are not sold in that year as increases in inventories and includes them in that year's GDP at market prices. In other words, the government assumes that the firm itself buys those goods for future resale. With this convention in mind, place a "yes" in a box if you think the statement is 100% true, place a "no" otherwise (without quotation marks and with no spaces). Ignore illegal goods and illegal activities altogether.

1.Any good produced domestically in a year will be included in that year's GDP

2.Any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption

3.Any good produced domestically and sold in a year will be included in that year's GDP.

4.Any good produced domestically and sold in a year will be included in that year's GDP, except those

produced by firms that are not sold.

5.Any good sold in a year will be included in that year's GDP.

6.Any service sold in a year will be included in that year's GDP

7.Any good that is not sold in a year will be excluded from that year's GDP.

8.If the U.S. government legalizes marijuana, the U.S. GDP will increase.

Answer 1

Part 1:

1. Yes (It will be included as imports.)
2. Yes (It will be included as exports)
3. Yes (It is a service.)
4. Yes (This year's production is included.)
5. No (Previous year's production is not included.)
6. No (Old goods's sale is not included.)
7. Yes (It is a government spending.)
8. Yes (It is a government spending.)

(Note: As HOMEWORKLIB's policy, one part will be answered at a time.)