Asked by elizabeth odegard on May 19, 2024
Verified
Which of the following will be included in the current year's gross domestic product (GDP) ?
A) The sale price of equipment produced last year but sold this year
B) The money spent by Kate on the purchase of new furniture
C) The money spent by Barney on the purchase of his uncle's house
D) The sale price of the stock purchased by John
E) The opportunity cost of the time spent by Bruno cooking lunch for his neighbor
Gross Domestic Product
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, a primary indicator of economic health.
Sale Price
The actual price at which an item or service is sold to the consumer, often reduced from its original or list price.
New Furniture
Recently manufactured items intended to support various human activities such as seating, eating, and sleeping.
- Acquire knowledge on how to calculate and analyze Gross Domestic Product, noting what is omitted or counted in its determination.
Verified Answer
JS
Jacalyn SchallerMay 20, 2024
Final Answer :
B
Explanation :
Only the money spent by Kate on the purchase of new furniture will be included in the current year's GDP as it represents a final good or service produced within the country's borders and sold to a consumer. A, C, and D do not represent current year production of goods or services, and E does not represent a market transaction.
Learning Objectives
- Acquire knowledge on how to calculate and analyze Gross Domestic Product, noting what is omitted or counted in its determination.