Which of the following examples of production of goods and services would be included in U. S. GDP? a. Sally, a Canadian citizen, works on a drilling crew in North Dakota for Northland Gas Services, and Northland sells the natural gas to a utility company in Canada. b. Jim grows pecans for his family in the yard of their San Antonio home. c. Joe grows marijuana in his Kansas City home and sells it to his friends and neighbors. d. None of the above examples of production would be included in U. S. GDP.

Question

Morgan Rhodes

Business

12 November, 16:18

Which of the following examples of production of goods and services would be included in U. S. GDP? a. Sally, a Canadian citizen, works on a drilling crew in North Dakota for Northland Gas Services, and Northland sells the natural gas to a utility company in Canada. b. Jim grows pecans for his family in the yard of their San Antonio home. c. Joe grows marijuana in his Kansas City home and sells it to his friends and neighbors. d. None of the above examples of production would be included in U. S. GDP.

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Answers (1)

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Libby · Answer 1

The correct answer is option a.

Explanation:

GDP is a measure to calculate the production of final goods and services within the geographical boundaries of a nation in a year. It is a tool to measure economic growth in a nation.

In the first statement here the production is taking place within the US boundaries, so this will be included in the US GDP.

In the second statement, there is no transaction taking place so it will not be included in the GDP.

In the third statement, the production of marijuana will not be included in the GDP as it is not legal in the US.