Question

Which of the following transactions will be included in GDP for the United States? a. Coca-Cola builds a new bottling plant in the United States. b. Delta sells one of its existing airplanes to Korean Air. c. Ms. Moneybags buys an existing share of Disney stock. d. A California winery produces a bottle of Chardonnay and sells it to a customer in Montreal, Canada. e. An American buys a bottle of French perfume in Tulsa. f. A book publisher produces too many copies of a new book; the books don't sell this year, so the publisher adds the surplus books to inventories.

Short answer

Answer: Transactions (a), (d), and (f) can be included in the GDP for the United States, as they involve the production of new goods, services, or investments within the country.

Step-by-step solution

Understanding each transaction

a. Coca-Cola builds a new bottling plant in the United States: This involves the production of a new structure and investment in the US economy. b. Delta sells one of its existing airplanes to Korean Air: This transaction involves the resale of an existing product and not the production of a new good. c. Ms. Moneybags buys an existing share of Disney stock: This transaction is a financial transaction, which does not involve the production of goods or services. d. A California winery produces a bottle of Chardonnay and sells it to a customer in Montreal, Canada: This transaction involves the production and export of a new good in the United States. e. An American buys a bottle of French perfume in Tulsa: This transaction is an import, thus not contributing to the production of goods or services within the United States. f. A book publisher produces too many copies of a new book; the books don't sell this year, so the publisher adds the surplus books to inventories: This involves the production of new goods, even though they are not sold during the given year.

Identifying transactions included in GDP

According to our understanding of what transactions can be included in the US GDP, we can conclude the following: - Transaction (a) is included in GDP as it is an investment in a new structure. - Transaction (b) is not included in GDP as it involves resale of an existing product. - Transaction (c) is not included in GDP as it is a financial transaction. - Transaction (d) is included in GDP as it is the production and export of a new good. - Transaction (e) is not included in GDP as it is an import. - Transaction (f) is included in GDP as it involves the production of new goods.