Question

Are the following in the US GDP Explain why or why not

Used cards sold at a used car store

Your used car you sell to your cousin

Wine made in Napa Valley at a vineyard owned by Australians

Wine made in Australia at a vineyard owned by Americans

The price paid by a french tourist when staying at a San Francisco hotel

The price paid by an American tourist staying at a Paris hotel

A ticket for a lakers game

Answer 1

GDP is the value of the final goods and services produced within a country in a given period of time.

a) Used cars sold at a used cars store - It is not included in the US GDP because used cars are not produced during that year.

b) Your used car you sell to your cousin - your used car is not produced in that given year. So it is not included in the US GDP.

c) wine made in napa valley at a vineyard owned by Australians- Though the vineyard is owned by Australians but the wine is produced within the USA, so it will be calculated as part of US GDP.

d) Wine made in Australia at a vineyard owned by Americans - It is not included in GDP as it is produced outside the USA.