Question

Which of the following is NOT included in U.S. GDP?

A. The construction of new homes to replace those destroyed by fires in California
B. The salary of the President of the United States
C. Shoes produced abroad and imported by a U.S. company
D. The purchase of U.S. soybeans by a food manufacturer in Canada

Answer 1

C) Shoes produced abroad and imported by a U.S. company

Step-by-step explanation:

The gross domestic product includes the market value of all final and legal goods and services produced within the country during a specific period of time.

Shoes produced abroad and imported into the US are included in the GDP calculations as imports but they decrease net exports. That means they decrease GDP, so they are not included in it.