In 2015, Pete Rich purchases a 1642 painting by Rembrandt for $20 million. He also pays a one percent commission to the auction house that sold the painting. What is the contribution of these transactions to GDP in the year 2015?
A. $2 million
B. $0
C. $200,000
D. $20.2 million
Answer: C
You might also like to view...
What constitutes meaningful independence of a central bank?
What will be an ideal response?
Suppose the economy is in long-run equilibrium at the level of potential output. What will be the long-run effect of an expansionary monetary policy?
a. a higher price level b. a higher level of real output c. both a higher price level and a higher level of real output d. a lower price level e. a lower level of real output
Suppose that the prices of dairy products have risen relatively less than prices in general over the last several years. To which problem in the construction of the CPI is this situation most relevant?
a. substitution bias b. introduction of new goods c. unmeasured quality change d. income bias
Assume the price of cola is $8 per unit and the price of pretzels is $4 per unit.Table 19.3Michael's Utility ScheduleUnits of ColaTU of ColaMU of ColaUnits of PretzelsTU of PretzelsMU of Pretzels14040130302 322 2039624366164112 478 5124 584 The marginal utility per dollar of the third pretzel is
A. 6. B. 12. C. 4. D. 5.