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?
Bobby mowing his
b. Terry Yanemoto buying a used car
c. Barbara Wilson buying 100 shares of
d. Stephen Sidwhali’s
receipt of a Social
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
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.
- Winter '14