Question

Classify the given goods according to whether or not they would be included in calculating the GDP for the United States. All goods should be placed. If a country is not specified, you can assume the action is performed in the United States.A. Honda's assembly and sale of cars in the U.S. B. Sale of wheat to Mrs. Baird's Bakery.C. Resale of used textbooks to college students.D. GM's assembly and sale of cars in Mexico.E. Ocean Spray purchases plastic to make bottles.F. Old Navy purchases mannequins to display clothes.

Answer 1

Included in the GDP of the U.S:

• Honda assembly and sale of cars in the U.S.
• Old Navy purchases mannequins to display clothes

NOT included in the GDP of the U.S:

• Sales of wheat to Mrs. Baird's Bakery.
• Resale of used textbooks to college students.
• GM's assembly and sale of cars in Mexico.
• Ocean Spray purchases plastic to make bottles.

Explanation:

Gross Domestic Product (GDP) helps in measuring the production of goods and services in the country. The economic growth of the country is estimated by observing the GDP. One way to increase GDP is by increasing the literacy rate of the country.

Based on the given goods, the following can be included in the GDP of United States of America:

Assembly and sale of cars by Honda company in America.

Mannequins are purchased by Old Navy to display clothes.