ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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YES
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NO
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Either A or B
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None of the above
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Detailed explanation-1: -Yes, a BMW manufactured anywhere in the United States would be part of GDP.
Detailed explanation-2: -In the case of the automobiles, the value added would be the sale price of the car minus the cost of the raw steel. So, in this case, GDP counts the purchase of the steel and the value added of the automobiles. Second-hand items, such as used cars, are also not included in the GDP calculations.
Detailed explanation-3: -Expert Answer Goods and services produced at home are not included in the GDP.
Detailed explanation-4: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
Detailed explanation-5: -The calculation of a country’s GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).