Question
a. Including only the items that should be included, what would be the GDP of these events? Please show your calculations. Also, indicate what events
a. Including only the items that should be included, what would be the GDP of these events? Please show your calculations. Also, indicate what events are excluded from GDP calculation for being a nonproduction transaction.
The following events took place during the year:
1.-1 million Social Security payments of $1200 were made.
2.-Farmer Jones grew and sold 1000 bushels of corn for $8 per bushel
3.-Smith, a professional painter, painted 9 houses at $6000 per house.
4.-2 million people went to see the new Star Wars movie at a price of $12 per ticket
5.-Smith grew 10 pounds of tomatoes in his backyard for his own meals. Tomatoes cost $4 per pound at the supermarket.
6.-Johnson sold all his used college textbooks for $250
7.- Brown sold shares of Apple stock for $10000. He paid E-Trade a $10 commission for the trade.
8.-Green cut his own lawn 15 times. Based on what his neighbors pay, the value of this work totals $1500
9.-GM produced and sold 100 electric cars for $50,000 each
10.-Martin, a plumber and citizen of Mexico, installed 10 boilers in houses in Texas at a fee of $2000 per installation
11.-Douglas, a US citizen, earned $4000 working the summer in France
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started