Name: _____________________
WORKSHEET-GDP
Directions: For each of the following, determine whether or not it is counted in GDP. If it’s
counted, then tell me whether it’s Consumption, Investment, Government Spending, Net
Exports, Rent, Wages, Interest or Profit. If it’s not counted, then explain why.
Event
1. The best Thai restaurant in town purchases ties
for its’ employees
2. Tommy receives a check from Uncle Jimmy to
put towards his first year of college.
3. You and a friend go see the 23rd movie Leonardo
DiCaprio made where he will not win an Oscar and
spend $45 for a ticket and popcorn.
4. Grandma Mimi receives a social security check
from the government.
5. You purchase a new Toyota car (produced in
Japan) to use as an Uber driver to earn money parttime.
6. You buy a new 1 bedroom, 2 bath house for
$595,000 (yes, you live in San Francisco)
7. The government decides to treat college like K-12
education and provide college as a public good (no
cost to the student)
8. You purchase wood from Home Depot for $1,500
and use it to build a deck on your San Francisco
home
9. Skippy’s babysitter takes him to a flea market
(no, they don’t sell fleas there) and he buys a
bootlegged (illegal) copy of Don’t Tell Mom the
Babysitter’s Dead, just for fun.
10. Tickle Me Elmo inventories increase by
15,000,000 units
11. Skippy’s babysitter (a high school student from
the neighborhood) demands and receives $100 per
hour to babysit Skippy (her price went up after the
flea market stunt)
12. The government spends $7.5 billion to help
clean up after a rare December hurricane (Hurricane
Rudolph)
13. Apple sells $300 million in iCars (not a thing
yet…) to China
Affect
GDP?
Which
Increase or
Component? Decrease GDP?
PART 2
If it doesn’t count, check in the No column
If it does count, check the Yes column and list which part of GDP it counts in: C or Ig or G or Xn?
No
1. You purchase a newly built home as the first owner.
2. You purchase a used home that is priced twice as much as nearby new homes.
3. You pay a high schooler on your block to come over and re-configure your
laptop.
4. You pay your son to babysit the younger children for an afternoon.
5. A local engineering company buys new computer stations for all employees.
6. You purchase an expensive 19th Century painting as an investment.
7. The federal government buys concrete for highway construction.
8. Chase bank makes massive profits from FFR loans to other banks.
9. Dell Computer Inc. provides tech support for European Dell owners.
10. Ford makes 100 trucks in December of this year, but they might sell next year.
11. A college student receives $1000 from grandparents for textbooks (all 2
books!).
12. A refinery spends $100 million to repair aged pipes in the production system.
13. A US t-shirt company buys all its cotton from Egypt.
14. Using inside information, a political leader makes big profits selling stocks.
15. Ford purchases millions of tires for assembly lines of new cars.
16. You buy a car tire off the showroom floor of a tire and battery store.
17. You earn over $1 million in sales of Bitcoins.
18. You spend $2000 of stimulus money from Congress on food.
19. You are a manufacturer and you pay millions for plastic parts each year.
20. A company pays millions each year to keep old equipment running at the
factory.
Yes
C, I, G, or
Xn?