Question

Which goods would be included in the calculation of GDP?
A. toys made in China at a factory owned by a U.S. company
B. cars made in Tennessee at a factory owned by a Japanese car company
C. plastic made in Kentucky and sold to a toy maker in Ohio
D. cotton cloth made in India and sold to clothes makers in the United States

Answer 1

Whose GDP?

Answer 2

Finished goods intended for sale in the country of manufacture...which of those choices fits that description?

Answer 3

A

Answer 4

Certainly not for US GDP!

Answer 5

Who owns the factory is not relevant. Finished goods, for sale in the country of manufacture.