Ignoring transaction charges, which of the following is included in GDP computation? A) The purchase of stocks and bonds. B) The sale of a used car. C) A newly constructed house. D) All of the above. E) None of the above.
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- GDP (Gross Domestic Product) is the total market value of all final goods and services produced within a country in a given period. Show more…
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Which of the following are included in this year's GDP? Explain your answer in each case. a. Interest on an AT\&T corporate bond. b. Social Security payments received by a retired factory worker. c. The unpaid services of a family member in painting the family home. d. The income of a dentist. e. The money received by Smith when she sells her economics textbook to a book buyer. f. The monthly allowance a college student receives from home. g. Rent received on a two-bedroom apartment. h. The money received by Josh when he resells his currentyear-model Honda automobile to Kim. i. The publication of a college textbook. j. A 2 -hour decrease in the length of the workweek. k. The purchase of an AT\&T corporate bond. 1. A S2 billion increase in business inventories. m. The purchase of 100 shares of GM common stock. n. The purchase of an insurance policy.
What components of GDP (if any) would each of the following transactions affect? Explain. a. A family buys a new refrigerator. b. Aunt Jane buys a new house. c. Ford sells a Thunderbird from its inventory. d. You buy a pizza. e. Quebec repaves Highway 50 f. Your parents buy a bottle of French wine. g. Honda expands its factory in Alliston, Ontario.
What components of GDP (if any) would each of the following transactions affect? Explain. a. Uncle Fester buys a new refrigerator from a domestic manufacturer. b. Aunt Dolly hires a local contractor to build her a new house. c. The Huang family buys an old Victorian house from the Ellis family. d. You pay a hairdresser for a haircut. e. Ford sells a Mustang from its inventory to the Martinez family. f. Ford manufactures a Focus and sells it to Avis, the car rental company. g. California hires workers to repave Highway 66 h. The federal government sends your grandmother a Social Security check. i. Your parents buy a bottle of French wine. j. Honda expands its factory in Ohio.
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