Asked by Daniel Romero on May 06, 2024
Verified
Which of the following would be included in the calculation of gross domestic product (GDP) ?
A) The value of a used automobile purchased by Jim
B) The sale price of a new house purchased by Joe
C) The receipt of $100 in food stamps by Sandy
D) The $200 that Kurt spends on the purchase of bonds
E) The amount of money that Laurie receives as unemployment benefit after losing her job
Gross Domestic Product
The cumulative market or monetary value of all completed goods and services generated inside a nation's borders during a particular timeframe.
Food Stamps
A governmental assistance program providing low-income individuals and families with funds to purchase groceries, aimed at alleviating food insecurity.
Unemployment Benefit
Financial assistance provided by the government to individuals who are unemployed and meet certain eligibility requirements.
- Gain insight into the computation and interpretation of Gross Domestic Product, acknowledging what is included and excluded.
Verified Answer
TB
Thomas BlakelyMay 07, 2024
Final Answer :
B
Explanation :
The sale price of a new house purchased by Joe would be included in the calculation of GDP as it represents a new addition to the economy's stock of physical goods and services. The value of a used automobile (A) is not included in GDP as it is not a newly produced good. Receipt of food stamps (C) and money received as unemployment benefits (E) are transfer payments and do not represent a new production of goods or services. The $200 spent on the purchase of bonds by Kurt (D) is not included in GDP as it does not represent a final good or service purchased by a consumer.
Learning Objectives
- Gain insight into the computation and interpretation of Gross Domestic Product, acknowledging what is included and excluded.