Assume this year, your friend sold his 5-year-old PlayStation at his garage sale and his mom sold her old Ford Explorer that their family bought in 2006. These transactions are Group of answer choices included in current GDP because GDP measures the value of all goods and services sold in the current year. included in current GDP but valued at their original prices. not included in current GDP because it is difficult to determine their value. not included in current GDP because GDP only measures the value of goods and services produced in the current year.
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Why do economists include only final goods and services in measuring GDP for a particular year? Why don't they include the value of the stocks and bonds bought and sold? Why don't they include the value of the used furniture bought and sold?
Juan N.
The U.S. government treats the goods produced by a firm in a year that are not sold in that year as increases in inventories and includes them in that year's GDP at market prices. In other words, the government assumes that the firm itself buys those goods for future resale. With this convention in mind, place a "yes" in a box if you think the statement is 100% true, place a "no" otherwise (without quotation marks and with no spaces). Ignore illegal goods and illegal activities altogether. Any good produced domestically in a year will be included in that year's GDP. Any good produced domestically in a year will be included in that year's GDP, except those produced by households for their own consumption . Any good produced domestically and sold in a year will be included in that year's GDP . Any good produced domestically and sold in a year will be included in that year's GDP, except those produced by firms that are not sold. Any good sold in a year will be included in that year's GDP. Any service sold in a year will be included in that year's GDP. Any good that is not sold in a year will be excluded from that year's GDP. If the U.S. government legalizes marijuana, the U.S. GDP will increase.
Rachel G.
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