Which goods would be included in the calculation of GDP?

A. toys made in China at a factory owned by a U.S. company
B. cars made in Tennessee at a factory owned by a Japanese car company
C. plastic made in Kentucky and sold to a toy maker in Ohio
D. cotton cloth made in India and sold to clothes makers in the United States

D

oh darn I meant A

No

Neither A nor D. Read your text materials. You're on your own now.

http://www.investopedia.com/terms/g/gdp.asp

In my textbook it gives these examples:

YES-Money paid by shoppers in New York for corn grown in Iowa
YES-Money paid by buyers in Indiana for cars made by a Japanese company at a factory in Kentucky
YES-Fees charged to patients by a dentist in Texas

NO-Money paid by a computer factory in New Mexico for computer chips produced in California
NO-Cost of processing wood pulp into paper at a factory in Maine
NO-Money paid by shoppers in Florida for jeans manufactured in Mexico by a company headquartered in North Carolina

Read the definition of GDP that I posted, then see which of these four choices would be considered part of the Gross DOMESTIC Product.

I'm doing just that, thanks.

It is B and I am absolutely sure!

I think you are right this time. It pays to know what terms like GDP mean! Read carefully.

Yes it does. Thank you, Reed! :)

To determine which goods would be included in the calculation of GDP (Gross Domestic Product), we need to understand what GDP represents. GDP is a measure of the total value of all goods and services produced within a country's borders during a specific time period, typically a year.

In order for a good to be included in the calculation of GDP, it needs to meet two criteria:

1. It must be a final good: GDP only includes the value of final goods and services that are ready for use by consumers, businesses, or the government. Intermediate goods, which are used in the production of other goods, are not included.

2. It must be produced within the country's borders: GDP only includes goods and services produced within a country's territorial boundaries.

Let's analyze each option:

A. Toys made in China at a factory owned by a U.S. company: These toys were produced outside the United States, so they would not be included in U.S. GDP.

B. Cars made in Tennessee at a factory owned by a Japanese car company: Although this car was manufactured in the United States, it was produced by a foreign company. However, since it was produced within the United States' borders, it would be included in U.S. GDP.

C. Plastic made in Kentucky and sold to a toy maker in Ohio: This plastic was produced and sold within the United States, so it would be included in U.S. GDP.

D. Cotton cloth made in India and sold to clothes makers in the United States: This cotton cloth was produced outside the United States, so it would not be included in U.S. GDP.

Based on the analysis, option B would be included in the calculation of U.S. GDP, while options A, C, and D would not be included.