1. For each of the following scenarios, first determine if the transaction is going to be included in GDP or not. Then if you are including it, categorize the transactions as one of the four components of GDP expenditure: (Note, if not included, it won't have a GDP component) a. Chris buys season tickets to the Blues games. b. After winning the lotto, Brandon decides to have a new vacation home built just outside of Malibu. As a hobby, Kayla designs and sews her own purses. SweetSounds Inc. purchases a lathe to produce custom guitars for their customers c. d. e. While studying abroad in Madrid, Jacob missed Twinkie's so much, that he ordered a case of them from the Hostess plant in Emporia, Kansas. f. To better deal with illegal meth production, the Missouri legislature approves a measure to purchase drug "sniffing" drones. g. The Secret Service has to replace a broken down Escalade for the President's motorcade so they purchase a new one. Escalades are produced in a factory outside of Detroit. h. Cadillac takes advantage of low steel prices and produces hundreds of new Escalades it plans on selling next February. i. Impressed with the President's Escalade, the Prime Minister of Britain purchases one as well. You appreciate style so you purchase Italian jeans.
1. For each of the following scenarios, first determine if the transaction is going to be included in GDP or not. Then if you are including it, categorize the transactions as one of the four components of GDP expenditure: (Note, if not included, it won't have a GDP component) a. Chris buys season tickets to the Blues games. b. After winning the lotto, Brandon decides to have a new vacation home built just outside of Malibu. As a hobby, Kayla designs and sews her own purses. SweetSounds Inc. purchases a lathe to produce custom guitars for their customers c. d. e. While studying abroad in Madrid, Jacob missed Twinkie's so much, that he ordered a case of them from the Hostess plant in Emporia, Kansas. f. To better deal with illegal meth production, the Missouri legislature approves a measure to purchase drug "sniffing" drones. g. The Secret Service has to replace a broken down Escalade for the President's motorcade so they purchase a new one. Escalades are produced in a factory outside of Detroit. h. Cadillac takes advantage of low steel prices and produces hundreds of new Escalades it plans on selling next February. i. Impressed with the President's Escalade, the Prime Minister of Britain purchases one as well. You appreciate style so you purchase Italian jeans.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Can you do d,e, and f
Transcribed Image Text:1. For each of the following scenarios, first determine if the transaction is going to be
included in GDP or not. Then if you are including it, categorize the transactions as one
of the four components of GDP expenditure: (Note, if not included, it won't have a GDP
component)
a. Chris buys season tickets to the Blues games.
b. After winning the lotto, Brandon decides to have a new vacation home built just
outside of Malibu.
c.
As a hobby, Kayla designs and sews her own purses.
d. SweetSounds Inc. purchases a lathe to produce custom guitars for their
customers
e. While studying abroad in Madrid, Jacob missed Twinkie's so much, that he
ordered a case of them from the Hostess plant in Emporia, Kansas.
f.
To better deal with illegal meth production, the Missouri legislature approves a
measure to purchase drug "sniffing" drones.
g.
The Secret Service has to replace a broken down Escalade for the President's
motorcade so they purchase a new one. Escalades are produced in a factory
outside of Detroit.
h.
Cadillac takes advantage of low steel prices and produces hundreds of new
Escalades it plans on selling next February.
i. Impressed with the President's Escalade, the Prime Minister of Britain purchases
one as well.
j.
You appreciate style so you purchase Italian jeans.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education