Asked by Christian Poncio on Jun 18, 2024
Verified
The sale of a used 1999 automobile in 2009 would not be included in 2009 GDP because it
A) is a nonmarket transaction.
B) would involve double counting.
C) has already been accounted for.
D) is a noninvestment transaction.
Double Counting
An error in accounting or statistical analysis where the same item is counted more than once, leading to inaccuracies in financial or economic data.
- Separate final goods and services from intermediate goods to preclude repetitious counting in the assessment of Gross Domestic Product.
Verified Answer
LM
Lelethu MgusheloJun 21, 2024
Final Answer :
C
Explanation :
The sale of a used good, such as a 1999 automobile in 2009, is not included in the GDP for 2009 because GDP measures the market value of all final goods and services produced within a country in a given period. Since the car was produced in 1999, its value was included in the GDP of that year, not 2009. Including it again would not accurately reflect the economic activity of 2009.
Learning Objectives
- Separate final goods and services from intermediate goods to preclude repetitious counting in the assessment of Gross Domestic Product.