Answer:
Included in 2020 GDP
1. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 14, 2020. An elementary school student buys the chocolate bar on December 24.
4. Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2020. It sells the car at a dealership in San Francisco on February 2, 2020.
5. Roadway Motors, a U.S. automobile company, produces a convertible at a plant in Germany on March 11, 2020. Roadway Motors imports the convertible into the United States on May 29, 2020.
NOT INCLUDED IN 2020 GDP
2. The Jones family buys an antique silver platter at an auction in upstate New York on March 11, 2020.
3. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 25, 2020. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2020
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceeds import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
The purchase of chocolate would be added to GDP as part of consumption spending on non durable items.
the purchase of the antique silver platter would not be added as part of GDP because it wasn't produced in 2020 and only goods produced in 2020 would be added to 2020 GDP.
The corn syrup is an intermediate good and it would not be added in the calculation of GDP. only final goods are added in the calculation of GDP.
The automobile would be added to GDP as part of investment spending by businesses.
the import of cars would be added as part of net export in 2020 GDP
