Question

The gross domestic product (GDP) of the United States is defined as the all in a given year. Based on this definition, which of the following will be included in (that is, directly increase) the GDP of the United States in 2017?

a. Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2017. It sells the table to a college student on December 19, 2017. An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018.
b. Treetopplers, an American lumber company, produces wood at a plant in Oregon on September 5, 2017. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be made in the United States In December.
c. Athleticus, an American shoe company, produces a pair of sneakers at a plant in Vietnam on March 5, 2017. Athleticus imports the pair of sneakers into the United States on May 14, 2017.
d. Zippy car, an American automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2017. It sells the car at a dealership in Philadelphia on February 18, 2017.

Answer 1

Step-by-step explanation:

GDP is defined as the value of all final goods and services that were produced In the US within a given year.

With this in mind,

A. Sofaland would be included in the GDP of the US, since the table was made and sold in the US in 2017.

B. The finished tax return by the accountant would not be included in the GDP as production for 2018 as it is not yet finished.

C. The lumber company treetopplers would not be included as part of the GDP since the production of lumber cannot be regarded as final good.

D. Athleticism"s importation from Vietnam to the US is not part of gdp since it is not domestic production.

E. Zippycar made the car in the us and sold in the US same year. This would be included in gdp of US.