Question

Classify the following 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.1. Honda's assembly and sale of cars in the U.S. 2. Sale of wheat to Mrs. Baird's Bakery 3. Resale of used textbooks to college students 4. GM's assembly and sale of cars in Mexico 5. Ocean Spray purchases plastic to make bottles 6. Old Navy purchases mannequins to display clothes

Answer 1

Answer:

we will classify them in the explanation below.

Explanation:

To be included in calculating US GDP                                    

• Honda's assembly and sale of cars in the US: this is because the cars were produced domestically in the US
• Old Navy purchases mannequins to display clothes: this is because the mannequins were already finished products when they were bought.

Not to be included in calculating US GDP

• Sale of wheat to Mrs. Baird's Bakery: this is because the wheat was not exchanged at the market, but rather will be used in the bakery.
• Resale of used textbooks to college students: this is because only newly produced goods are included in GDP calculation.
• GM's assembly and sale of cars Mexico: this will be added to Mexico's GDP and America's GNP.
• Ocean Spray purchase of plastic to make bottles: this is because the value of the plastic will be reflected in the price paid by the consumer after the bottle has been made.