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Production data for selected cars

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Reference no: EM132228600

The output approach to calculating GDP

The following chart provides production data for selected cars. All prices are quoted in U.S. dollars.

------------------Ferrari F1------Ford Focus--------Honda CRV

------------Origin / Price-----Origin / Price---------Origin / Price

Engine-----Italy / 60,000----Mexico / 5,000-------USA / 7,000

Trans------ Italy / 50,000----Mexico / 4,000-------USA / 5,500

Body--------Italy / 55,000-----USA / 3,000-----Japan / 4,500

Other------- Italy / 30,000-----USA / 1,500-----Japan / 2,000

The Ferrari F1 is produced in Italy. It costs dealerships $280,000 to import the F1 into the United States and it sells at an MSRP of $350,000. The Ford Focus is produced in Mexico. The Focus costs dealerships $20,000 to import into the United States and it sells at an MSRP of $25,000. The Honda CRV is produced in the United States and costs dealerships $23,000. The CRV sells at an MSRP of $30,000. Calculate each car's contribution to U.S. gross domestic product.

Reference no: EM132228600

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