Question

Classify each item according to whether it is included in the calculation of the Gross Domestic Product (GDP): consumption, investment, government, or net exports (or trade balance). If the item is not included in GDP, do not classify it. Net exports Consumption Goverment Investment the purchase of ice cream a domestically manufactured personal computer a domestically manufactured cab fare for personal use a public school teacher's salary an exported dollhouse business computer spending 55 cents on tacos a Grey Cup ticket bought new from the CFL Answer Bank Canada Pension Plan payments the purchase of company stock babysitting paid for in cash and unreported

Answer 1

Net exports:

An exported dollhouse

Consumption:

The purchase of ice cream

A domestically manufactured personal computer

Cab fare for personal use

Business computer spending

Spending 55 cents on tacos

A Grey Cup ticket bought new from the CFL

Investment:

None listed explicitly, but the following items could potentially be included in investment, depending on the context:

A domestically manufactured personal computer

Business computer spending

A Grey Cup ticket bought new from the CFL

The purchase of company stock

Government:

A public school teacher's salary

Canada Pension Plan payments

Not included in GDP:

Babysitting paid for in cash and unreported