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For each of the following transactions, determine the contribution to the current year's GDP. Explain the effects on the product, income, and expenditure accounts.
a. On January 1, you purchase 10 sheets of plywood at $20 per sheet. The lumber store purchased the plywood the previous week at a wholesale price (transportation included) of $15 per sheet.
b. Colonel Hogwash purchases a West Vancouver mansion for $1,000,000. The broker's fee is 6%.
c. A home maker enters the workforce, taking a job that will pay $20,000 over the year. The home maker must pay $8000 over the year for professional child-care services.
d. The Japanese build an auto plant in Quebec for $100,000,000, using only local labour and materials. {The auto plant is a capital good produced by Canadians and purchased by the Japanese.)
e. You are informed that you have won $3,000,000 in Lotto 6/49, to be paid to you, in total, immediately.
f. The lottery corporation pays you an additional $5000 fee to appear in a TV commercial publicizing the provincial lottery.
g. Discount Car Rentals replaces its rental fleet by buying $100,000,000 worth of new cars from General Motors. It sells its old fleet to a consortium of used-car dealers for $40,000,000. The consortium resells the used cars to the public for a total of $60,000,000.
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