Question

2. Activities included (and not included) in the calculation of GDP

The gross domestic product (GDP) of the United States is defined as the (MARKET VALUE OF/ COST OF PRODUCING/ WHOLESALE COST OF) all (FINAL GOODS AND SERVICES PRODUCED/ FINAL GOODS AND SERVICES CONSUMED/ FINAL AND INTERMEDIATE GOODS AND SERVICES PRODUCED) in a given period of time.

Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017.

Scenario	2017 GDP
	Included	Excluded
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 11, 2017. It sells the set of tires to Speedmaster for use in the production of a two-door coupe that will be made in the United States in 2017. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.)
You chop down a cherry tree on your property in California and make a dining room table in 2017. A similar table sells for $800 in a local furniture store.
Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 23, 2017. It sells the car at a dealership in Denver on February 14, 2017.
Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 4, 2017. An elementary school student buys the chocolate bar on December 23.
Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 2, 2017. Athleticus imports the pair of sneakers into the United States on May 24, 2017.

Answer 1

2. Activities included (and not included) in the calculation of GDP

The gross domestic product (GDP) of the United States is defined as the MARKET VALUE OF all FINAL GOODS AND SERVICES PRODUCED in a given period of time.

Based on this definition, indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017.

Scenario	2017 GDP
	Included	Excluded
Rotato, a U.S. tire company, produces a set of tires at a plant in Michigan on September 11, 2017. It sells the set of tires to Speed master for use in the production of a two-door coupe that will be made in the United States in 2017. (Note: Focus exclusively on whether production of the set of tires increases GDP directly, and ignore the effect of production of the two-door coupe on GDP.)		Not Included
You chop down a cherry tree on your property in California and make a dining room table in 2017. A similar table sells for $800 in a local furniture store.		Not Included
Zippycar, a U.S. automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 23, 2017. It sells the car at a dealership in Denver on February 14, 2017.	Included
Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 4, 2017. An elementary school student buys the chocolate bar on December 23.	Included
Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 2, 2017. Athleticus imports the pair of sneakers into the United States on May 24, 2017.		Not Included