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Which of the following scenarios would be included when calculating the GDP of the United States?

A. Cars manufactured in Tennessee at a factory owned by a Japanese automobile company
B. Cotton cloth manufactured in Mexico and sold to fashion designers in the United States
C. Plastic manufactured in a factory in India and shipped to producers around the world
D. Toys manufactured in China at a factory owned by a U.S. company

Answer :

Final answer:

Only cars manufactured in Tennessee at a factory owned by a Japanese automobile company would be included in the GDP of the United States since GDP calculations are based on the location of production within the country's borders.

Explanation:

The scenario that would be included when calculating the GDP of the United States is: Cars manufactured in Tennessee at a factory owned by a Japanese automobile company. Gross Domestic Product (GDP) measures the economic output by considering the value of traded goods and services produced within the borders of a country, regardless of who owns the production facilities.

Items such as cotton cloth manufactured in Mexico and sold in the US, plastic manufactured in India, and toys manufactured in China, even if by a U.S. company, are not included in the U.S. GDP. This is because they are not produced within the U.S. borders. Economists concentrate on the location of production over ownership in determining what counts toward a nation's GDP.

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