Question

In each of the following situations, how much do the actions taken contribute to U.S. GDP? Remember, some things aren’t counted! You may assume that all the goods were produced in the U.S. Type in each answer as a number, without commas or dollar signs. For example, "10000" will be accepted by Blackboard, but "$10,000" will not.

Bubba Bob pays a mechanic $200 to install a new carburetor in his 1984 ChevroletCamaro. Of this, $100 is parts, and $100 is labor.

Contribution to GDP:

Bubba Bob buys a new carburetor for his 1984 Camaro for $100, and then installs it himself.

Contribution to GDP:

Bubba Bob buys a used carburetor from a salvage yard for $10, and pays a mechanic $100 to install it.

Contribution to GDP:

Bubba Bob sells his 1984 Chevrolet Camaro to his friend, Leroy Bubba Cletus, for $800, and buys a 1990 Chevrolet Beretta for $1,200.

Contribution to GDP:

Bubba Bob sells his 1984 Chevrolet Camaro for $800, changes his name to Clarence JulienDelacroix, and buys a new Cadillac CTS-V for $80,000.

Contribution to GDP:

Answer 1

1. Contribution to GDP = 100 + 100 = 200

2. Contribution to GDP = 100

3. Contribution to GDP = 100

4. Contribution to GDP = 1200

5. Contribution to GDP = 80000