1. Explain why a BMW sport utility vehicle produced in South Carolina counts towards GDP but a Chevrolet Silverado Crew Cab truck made in Mexico is not? 2.Explain how lumber sold at Lowes or Home Depot could be counted as a final good for some sales but as an intermediate good for other sales.

## Step1<br />Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced within a country's borders over a specific time period. It includes all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade (exports are added, imports are subtracted). <br /><br />## Step2<br />A BMW sport utility vehicle produced in South Carolina counts towards the U.S. GDP because it is produced within the country. The production of this vehicle contributes to the country's economic output and is a part of the country's GDP.<br /><br />## Step3<br />On the other hand, a Chevrolet Silverado Crew Cab truck made in Mexico does not count towards the U.S. GDP because it is produced outside the country. The production of this vehicle contributes to the economic output of Mexico, not the U.S.<br /><br />## Step4<br />Lumber sold at Lowes or Home Depot can be counted as a final good when it is purchased by a consumer for personal use, such as for home improvement projects. In this case, the lumber is not going to be used in the production of another good, so it is considered a final good.<br /><br />## Step5<br />However, if the lumber is purchased by a construction company to be used in building a house, it is considered an intermediate good. This is because the lumber is being used as a raw material in the production of another good, which is the house.