GDP: Is It Counted and Where? (For Test)
Not counted
A family pays $75,000 for a house built three years ago
Investment spending
A family pays a contractor $150,000 for a house built three years ago
Consumption spending
An accountant pays a tailor $175 to sew a suit for her
Investment spending
At the end of a year, a flour-milling firm finds that its inventories of grain and flour are $10,000 higher than its inventories at the beginning of the year
Investment spending
Consumer electronics corporation Apple Inc. builds a new factory in the United States
Investment spending
Ford Motor Company buys new auto-making robots
Not counted
Parents work hard caring for their two children
Not counted
R.J. Reynolds buys control of Nabisco
Government spending
The government increases its defense expenditures by $1,000,000,000
Not counted
The government makes a $300 Social Security payment to a retired person
Not counted
You buy McDonald's stock for $1,000 in the stock market
Net exports
You buy a new Toyota that was made in Japan
Consumption spending
You pay $800 a month to rent an apartment
Consumption spending
You pay tuition to attend college
Consumption spending
You spend $10.00 to see a movie