Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 21, Problem 4MCQ
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Van and Amy Cho live in Conshohocken, PA. Amy's father, Carlos, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C),
investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction
Amy's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
Amy gets a new refrigerator made in the United States.
The Pennsylvania Department of Transportation, a state administration, fixes potholes along PA highway
23, which feeds into the center of Conshohocken.
Van's employer upgrades all of its computer systems using U.S.-made parts.
Van buys a sweater made in Guatemala.
C
I
0
G
0
0
X
|
M
How would each of the following transactions affect the GDP of the United States (Increase, decrease, or does not
change)? The U.S. government pays $1 billion in salaries for government workers. GDP will... The U.S. government
pays $1 billion to Social Security recipients. GDP will... The U.S. government pays a U.S. firm $1 billion for newly
produced airplane parts. GDP will... The U.S. government pays $1 billion in interest to holders of U.S. government
bonds. GDP will...
Bob and Cho Tokarev live in Conshohocken, PA. Cho's father, Eric, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C),
Investment (1), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction
The Federal Aviation Administration expands the runways at Philadelphia International Airport,
which is just a few miles from Bob and Cho's house..
Cho gets a new video camera made in the United States.
Cho buys a new BMW, which was assembled in Germany.
Bob's employer upgrades all of its computer systems using U.S.-made parts.
Cho's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
C
3
000
I
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G
X
M
000
Chapter 21 Solutions
Foundations of Economics (8th Edition)
Ch. 21.A - Prob. 1SPPCh. 21.A - Prob. 2SPPCh. 21.A - Prob. 3SPPCh. 21.A - Prob. 4SPPCh. 21.A - Prob. 5SPPCh. 21.A - Prob. 6SPPCh. 21.A - Prob. 7SPPCh. 21.A - Prob. 1IAPCh. 21.A - Prob. 2IAPCh. 21.A - Prob. 3IAP
Ch. 21.A - Prob. 4IAPCh. 21.A - Prob. 5IAPCh. 21.A - Prob. 6IAPCh. 21.A - Prob. 7IAPCh. 21 - Prob. 1SPPACh. 21 - Prob. 2SPPACh. 21 - Prob. 3SPPACh. 21 - Prob. 4SPPACh. 21 - Prob. 5SPPACh. 21 - Prob. 6SPPACh. 21 - Prob. 7SPPACh. 21 - Prob. 8SPPACh. 21 - Prob. 9SPPACh. 21 - Prob. 10SPPACh. 21 - Prob. 1IAPACh. 21 - Prob. 2IAPACh. 21 - Prob. 3IAPACh. 21 - Prob. 4IAPACh. 21 - Prob. 5IAPACh. 21 - Prob. 6IAPACh. 21 - Prob. 7IAPACh. 21 - Prob. 8IAPACh. 21 - Prob. 9IAPACh. 21 - Prob. 10IAPACh. 21 - Prob. 11IAPACh. 21 - Prob. 12IAPACh. 21 - Prob. 1MCQCh. 21 - Prob. 2MCQCh. 21 - Prob. 3MCQCh. 21 - Prob. 4MCQCh. 21 - Prob. 5MCQCh. 21 - Prob. 6MCQCh. 21 - Prob. 7MCQ
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