If a consumer purchases a car battery from an auto supply store, then this is not counted as part of GDP.
Added by Ashlee C.
Step 1
Step 1: When a consumer purchases a car battery from an auto supply store, it is considered a final good or service because it is intended for the consumer's own use and not for further production. Show more…
Show all steps
Your feedback will help us improve your experience
Jennifer Stoner and 101 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well-being?
Jennifer S.
As the chapter states, GDP does not include the value of used goods that are resold. Why would including such transactions make GDP a less informative measure of economic well-being?
Christopher D.
When John buys new tires for his car it ______, and when Ford buys tires to put on new cars it ______. does not count toward GDP; does not count toward GDP counts toward consumption; does not count toward GDP does not count toward GDP; counts toward investment counts toward consumption; counts toward investment
Md.Daniyal A.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD