Problem set calculating GDP

Problem set calculating GDP - Find the addition to GDP in...

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Find the addition to GDP in 2008 in the following cases: 1. McDonalds farm produces 1,000 pounds of apples, sold at \$2 a pound and 400 pounds of tomatoes, sold at \$1.50 a pound during the summer and fall of 2008. (\$2,000+\$600 = \$2,600) 2. The Jones family bought their first house in May this year, at \$230,000. The house was built in 1979. (0) 3. The Japanese owned Toyota plant in Indiana produces 1,000 cars, sold at \$20,000 each during the year. Toyota buys tires for all the cars at \$100 a car from a US owned factory located in the US. (\$20,000 x 1,000 = \$20,000,000 = \$20 mill.) 4. The production is the same as in the previous question, but Toyota instead decides to import the tires from a foreign producer. They now pay \$80 dollar for a set of tires for a car. (\$20 mill - \$80 x 1,000 = \$19,920,000) 5. Toyota in Indiana produced 1,000 cars in 2008. 900 of the cars were sold at \$20,000 each in 2008, while they had 100 left in inventory at the end of the year. Inventory cars are valued at \$18,000 each. (\$20,000 x 900 + \$18,000 x 100 = \$18,000,000 + \$1.8mill = 19.8 mill.) 6. Jeff takes care of his children full time and saves the \$800 monthly for a nanny. (0) 7.

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