Clarity Dence pays $375 for a used acoustic guitar from the local music instrument dealer. The dealer himself purchased it for $150. In principle, how would this exchange affect GDP?
A) Nothing happens to GDP, because the guitar is a used good.
B) GDP increases by $150.
C) GDP increases by $225.
D) GDP increases by $375.
E) GDP increases by $525.
C
You might also like to view...
Use the graph below to answer the next question.
Other things equal, an increase the aging population in the United States would do what to the demand for nurses?
A. shift from D3 to D2 B. shift from D2 to D3 C. move from b to a on D1 D. move from a to b on D1
If income rises, most consumers will increase the quantity demanded of an inferior good.
Answer the following statement true (T) or false (F)
The above figure shows the market for rice in Japan where price is expressed in dollars. S represents the domestic supply curve, and the horizontal line at P = 1 represents the world supply curve. Suppose a free market exists
If a $1 per unit tariff is imposed on imported rice, the quantity of imported rice will decrease by A) Q1 units. B) Q2 - Q1 units. C) Q2 units. D) Q1 - Q2 units.
Refer to Scenario 16.3. What is Sally's marginal rate of substitution of tee shirts for candy at the current distribution?
A) 9/4. B) 2 C) 4/9. D) It is impossible to determine without the prices of each commodity.