Name: _____________________

GDP – To be, or not to be…counted? That is the question

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 Affect Which Increase or

GDP? Component? Decrease
GDP?
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
part-time.
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