See exhibit 11 4 jos is a mexican citizen working in

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Unformatted text preview: t it is counted in GDP because it was produced within the borders of the United States. (See Exhibit 11-4.) José is a Mexican citizen working in the United States. The dollar value of what he produces is counted in the U.S. GDP. Sabrina is a U.S. citizen living and working in Brazil. The dollar value of what she produces (in Brazil) is counted in U.S. GNP. EXAMPLE: 4. Which of the following are included in the calculation of this year’s GDP? a. Twelve-year-old Bobby mowing his family’s lawn b. Terry Yanemoto buying a used car c. Barbara Wilson buying 100 shares of Chrysler Corporation stock d. Stephen Sidwhali’s receipt of a Social Security check e. An illegal sale at the corner of Elm and Jefferson Critical Thinking 5. What is the difference (for purposes of measuring GDP) between buying a new computer and buying 100 shares of stock? Applying Economic Concepts 6. The government does not now include the housework that a person does for his or her family as part of GDP. Suppose the g...
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This document was uploaded on 01/16/2014.

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