Fred buys a fresh-off-the-assembly-line car from Wee-Rob-U Auto Sales. He paid $27,500, even though Wee-Rob-U acquired it for $23,000. What happens to this year's GDP?
A) Nothing.
B) It increases by $4,500.
C) It increases by $23,000.
D) It increases by $27,500.
E) It decreases by $4,500, because the dealer robbed Fred.
D
You might also like to view...
Which of the following is a component of a competitive market?
a. a buyer having significant market power b. buyers boycotting similar products c. sellers offering a wide variety of products d. a seller having little market power
The Keynesian cross model attributes differences between actual output and planned expenditure to
a) unintended inventory accumulation or depletion b) buffer stocks resulting from risk-averse decision-making regarding production c) taxes d) net exports e) the diminishing marginal product of capital
The investment in human capital through education and training can result in
A. Reduced output per labor hour. B. Greater productivity. C. Less capital-intensive production. D. Low factor mobility.
Efficiency can correctly be defined as
A) producing outside the production possibilities boundary. B) maximizing opportunity cost. C) producing the most output with given technology and resources. D) providing for the immediate needs of the greatest proportion of the population.