Asked by Julia Ibanez on May 26, 2024
Verified
Which of the following would be included in this year's gross domestic product (GDP) ?
A) One hundred shares of IBM stock that Tony sold this May
B) A used car that Tracey sold to Justin
C) George's purchase of a fishing rod and reel at a garage sale
D) Sharon giving Dennis $20 as a reward for finding her ring
E) A bucket of Kentucky Fried Chicken that Kate bought this July
Gross Domestic Product
The total monetary value of all goods and services produced by a country's economy over a specified period.
IBM Stock
Shares of ownership in the International Business Machines Corporation, a multinational technology and consulting company.
Garage Sale
A sale of used household or personal items held outdoors or in a garage, typically by the household residents to dispose of unwanted items.
- Absorb the principles of Gross Domestic Product calculation and interpretation, including the considerations of what to exclude or include.
Verified Answer
JA
Juliana AbdulMay 27, 2024
Final Answer :
E
Explanation :
Only the purchase of the bucket of Kentucky Fried Chicken counts towards GDP as it represents final consumption of goods and services. The other options involve the sale of a financial asset, a used good, a transaction between individuals that does not involve market activity, or a transfer payment which are not directly included in GDP.
Learning Objectives
- Absorb the principles of Gross Domestic Product calculation and interpretation, including the considerations of what to exclude or include.