Question

Tell which of the following totally enters GNP, partially enters GNP, or does not enter GNP.

     Briefly state why.

     Grob entered a store to buy some paint for his spaceship. A salesman helped him select

     15 gallons of starship silver, 3 rollers to apply the paint, many trim brushes, and one used

     drop cloth. Grob paid for the products in a foreign currency, took the drop cloth to the

     cleaners to be cleaned (for a price), and then returned to his ship to supervise the painting.

     Grob’s crew painted most of the ship, but the Martians hired local children to paint the

     legs of the spacecraft.

     Grob made sandwiches for all the workers, but he ran out of mayo. He went to a store to

     obtain more, but the only bottle available was found in a room that had not been entered

     since 1983. Grob took the bottle anyway (what did he care?), and also bought chocolate

     milk and kosher dill pickles.

     On the way home Grob saw the headlines of the evening newspaper which read, “Martians

     land on Earth.” Naturally Grob wanted a copy, so he stole one from the box. But as an

     act of kindness he gave a beggar 40 cents “for a cup of coffee.”

     Eventually all of the work was completed and the spaceship left for Mars powered by dirt

     Obtained at the launch site.  

Answer 1

Answer:- In this case, GNP will include only a portion of the product. GNP will include the hired men in Grob’s crew painting service. In fact, GNP will not include any product which is bought in the foreign country by a foreign country

Answer:- In this case, GNP will include some of the partial products. GNP will not include Mayo from the different year but chocolate milk and kosher dill pickles will be included in GNP.

Answer:-     In this scenario, GNP will include the final product of the newspaper. But the money paid to the homeless individuals will not be counted in GNP.

Answer:- GNP will include spaceship for the price of it but dirt will not be included in it as nothing new was produced and it did not incur any cost.

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