Economics 12th edition, Chapter 22 P. 485 asks which of the following transactions are included in gross domestic product, and by how much does each raise GDP?
1. Smith pays a carpenter $50,000 to build a garage
2. Smith purchases $10,000 worth of materials and builds himself a garage, which is worth $50,000.
3. Smith goes to the woods, cuts down a tree, and uses the wood to build himself a garage that is worth $50,000.
4. The jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000.
5. You purchase a used computer form a friend for $200.
6. You sell a used economics textbook to your college bookstore for $60.
7. You make $100 in the stock market.
8. You win $100 in an Atlantic City casino.
9. Your university purchases a new mainframe computer from IBM, paying $25,000.
10. You buy a new economics textbook from your college bookstore for $100