An example of an intermediate good is: O a) wages paid to an employee. This will thus constitute income in the hands of the chef and will thus get directly included in the GDP calculation. A) A drug addict buys cough medicine. a. the purchase of new tires by a family to replace worn our tires on the family b. the purchase of a used car c. the purchase of 100 shares of general motors stock d. the purchase of 2 grams of cocaine A or B; I chose A because for B I dont know the age of the car. Explain your answers. a) your purchase of your neighbor's Subaru. Which of the following transactions would not be counted in GDP? Explain your answers, a. B) A drug addict spends two months in a drug rehabilitation centre. Which of the following transactions is not directly included in GDP? c. Company A successfully launches a hostile takeover of company B, in which company A purchases all the assets of company B. d. Your grandmother wins six million in the lottery. The equation for calculating GDP is GDP= private consumption+ gross investment+ government investment+ government spending+ (exports-imports). e) Discouraged workers stop looking for work. Sale of used goods are excluded in this year's GDP. Ob) the hiring of a police officer. General Motors issues new shares of stock to finance the construction of a plant. The Gross Domestic Product is an important measure of determining the economic growth of the country. d) the production of a television show. Oc) the purchase of paint from Home Depot. c) Businesses substitute capital for labor. b) steel purchased by aircraft manufacturers. She visits the zoo in April 2011. c. In December 2010, Isabella eats onions that she harvested from her backyard garden in October 2010. d. C) A doctor treats a patient for drug addiction. A. Anton Purchased Friend's Condo B. Ronnie Bought A New BMW Oc. Frictional unemployment is considered good, since that means people may be seeking jobs that better match their skill sets. Which of the following is a part of GDP? Neighbor's Subaru is an use, Which of the following transactions would not be included in this year's GDP? Services, Gross Domestic Product: Definition and Components, Working Scholars Bringing Tuition-Free College to the Community. d) a smart phone purchased by a college student. a) A chef who owns a catering business is paid to cater a private party in someone's home. Question: QUESTION 4 Which Of The Following Transactions Is Included In A Current Year's GDP As Investment Spending? e) electric bills for your house. a) Workers quit to look for better jobs, and people re-enter the workforce. b) steel purchased by aircraft manufacturers. a. Jennifer works as a marriage counselor and her clients pay her on a per-hour basis for her services. D) Someone sells drugs in a black market. In February 2010, Amanda sells a 1996 Honda Accord to Isabella. Createyouraccount. True False. An example of an intermediate good is: O a) wages paid to an employee. Nick buys $5,000 worth of stock in Microsoft. a) your purchase of your neighbor's Subaru. Which of the following transactions is not included in GDP? Which of the following transactions would be included in GDP? Question: Which of the following transactions is not directly included in GDP? Ob) Businesses begin to offer increased work hours to their workers. d) the production of a television show. It represents the total value of final output produced in an economy in a given year. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. a.Coca-Cola builds a new bottling plant in the United States. Our experts can answer your tough homework and study questions. Olivia receives a tax refund of $500. 3) Which of the following transactions does not take place in the markets for the factors of production in the circular-flow diagram? b. (B) Counted:- Because it is counted as investment in construction. Consider an economy that produces only two goods : National Income Accounting in Economics: Definition, Uses & Equation, The Circular Flow of Income: Definition & Model, Crowding Out in Economics: Definition & Effects, Measuring the Money Supply: Explanation and Examples, Gross Domestic Product: How to Calculate Real GDP, What Is Inflation Rate? answer! | c) vegetables purchased for your dinner. Become a Study.com member to unlock this & c) a discouraged worker. Andy is not currently employed. Mary buys a used book for $5 at a garage sale. Question: Which of the following transactions would not be counted in GDP? 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Privacy Suppose two countries, Country A and Country B, What are the limitations of evaluating GDP? b) not in the labor force. k. A drug dealer sells s500 worth of illegal drugs. For providing the services: either for catering a party, cooking meals at a restaurant, or cooking meals for the president, the chef is paid in return for offering his services. Our experts can answer your tough homework and study questions. g. The government pays out Social Security benefits. Explain why there might be an increase in the official unemployment rate after several quarters of a strong expansion. Which of the following transactions would be included in GDP for 2010? Maggis Bought A New Play Gym Set For Her Day Care Business. h. A public utility installs new antipollution equipment in its smokestack. i. Luig's Pizza buys 30 pounds of mozzarella cheese, holds it in inventory for one month, and then uses it to make pizza (which it sells). copyright 2003-2020 Study.com. Which of the following transactions would not be included in this year's GDP? d) both "b" and "c". e) the purchase of a new computer. Peter buys a newly constructed house. All rights reserved. a. a) A chef who owns a catering business is paid to cater a private party in someone's home. a. b. Jason provides plumbing services for a plumbing company and receives an hourly wage from the company for his services. Andy is: a) in the labor force, and unemployed. General Motors issues new shares of stock to finance the construction of a plant. All rights reserved. j. Terms He would like to work but hasn't been looking for a job due to his poor prospects of finding work. 2003-2020 Chegg Inc. All rights reserved. You spend the weekend cleaning your apartment. (A) Not counted:- As there is no corresponding production of goods and services. The following transactions would not be included in this year's GDP: a) your purchase of your neighbor's Subaru. All other trademarks and copyrights are the property of their respective owners. c) A chef is paid to cook meals for the President at the White House. Sciences, Culinary Arts and Personal GDP is known as gross domestic product. Oc) the purchase of paint from Home Depot. Question: Will each of the following transactions be included in GDP for the United States? Reason: In all the above cases the chef is providing his services which is leading to value addition and resulting in an economic activity. b) A chef is paid to cook meals at a fancy restaurant downtown. In February 2010, Amanda buys a ticket to visit a zoo in Florida. O a) The government wants to instill optimism. copyright 2003-2020 Study.com. True or false? d) Instead of being classified as "not in the labor force", furloughed workers are now counted as unemployed. - Definition & Formula, Frictional Unemployment: Definition & Examples, Marginal Rate of Substitution: Definition, Formula & Example, Demand-Pull Inflation vs Cost-Push Inflation, LM Curve in Macroeconomics: Definition & Equation, Money and Multiplier Effect: Formula and Reserve Ratio, Gross Domestic Product: Items Excluded from National Production, The Cobb Douglas Production Function: Definition, Formula & Example, Fiscal Policy Tools: Government Spending and Taxes, Hospitality 105: Introduction to the Tourism & Travel Industry, Business 121: Introduction to Entrepreneurship, Internet & Social Media Marketing: Help & Review, UExcel Business Ethics: Study Guide & Test Prep, UExcel Organizational Behavior: Study Guide & Test Prep, Introduction to Management: Help and Review, Human Resource Management: Help and Review, Introduction to Macroeconomics: Help and Review, Financial Accounting: Homework Help Resource, College Macroeconomics: Homework Help Resource, Biological and Biomedical View desktop site, 1. Earn Transferable Credit & Get your Degree, Get access to this video and our entire Q&A library. All other trademarks and copyrights are the property of their respective owners. Determine whether or not the goods would be | ||For China ||For U.S ||For China ||For U.S How will a decrease in AS affect nominal GDP? e) none of the above. Sciences, Culinary Arts and Personal Ob) the hiring of a police officer. After several quarters of a severe recession, explain why there might be a decrease in the official unemployment rate. Which Of The Following Transactions Would Not Be Included In This Year's GDP? a. Ob) Rising wages in an expansion reduce the quantity of labor demanded. Labor force '', furloughed workers are now counted as investment in construction of! Consumption+ gross investment+ government investment+ government investment+ government investment+ government spending+ ( )! 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Government wants to instill optimism GDP= private consumption+ gross investment+ government spending+ exports-imports! The total value of final output produced in an expansion reduce the quantity labor!

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