Components of GDP
Determine if each of the items listed below should be included in U.S. GDP. If so, under which component should it be counted (Consumption, Investment, Government, Exports or Imports) and determine whether it would make total GDP go up or down. If it shouldn’t be counted, explain why not.
1. A stereo produced and sold in the U.S. by a Chinese company
2. Tuition at a private college
3. A Ford truck produced in Brazil and sold in the U.S.
4. Microsoft stock purchased on E-Trade
5. Steel from the U.S. sold to a car company in Detroit
6. A space shuttle launch
7. A video game made in the U.S. and sold in The U.K.
8. The purchase of a U.S. Treasury Bond by an individual
9. The construction of a new factory
10. The sale of a previously occupied house
11. A jacket made in Mexico and sold in the U.S.
12. Plastic purchased by a computer maker in Texas
13. A television produced and sold in Japan
14. Batteries made in Taiwan purchased by Apple for I-Phones
15. A home cooked meal for friends
16. A dinner at a restaurant
17. A computer produced in the U.S. and sold in Canada
18. A new interstate highway