Indicate Whether the Following Transactions Would Be Included in GDP

question 28

Essay

Indicate whether the following transactions would be included in GDP. If they are included, indicate which component (consumption, investment, government consumption and gross investment, or net exports) of GDP would be affected.
a.A Czech student attending school in Florida takes a summer job as a lifeguard.
b.A New York company buys welding equipment from a St. Louis firm to help it build jet fighters.
c.The IRS purchases a new computer from the GATS computer company (an American-owned business producing and operating in Germany) that will allow it to better detect income tax evasion.

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Definitions:

Simple

Easily understood or done; presenting no difficulty, characterized by simplicity.

Lymph

A clear fluid that circulates in the lymphatic system, carrying immune cells and removing toxins and waste materials from bodily tissues.

Fibroblasts

Connective tissue cells that produce the fibers and the protein and carbohydrate complexes of the matrix of connective tissues.

Sweat Glands

Exocrine glands found in mammalian skin that secrete sweat, a fluid containing water and electrolytes, which helps regulate body temperature.