Consider two cars manufactured by Chevrolet in 2014 . During 2014, Chevrolet sells one of the two cars to Emily for $20,000 . Later in the same year, Emily sells the car to Jim for $18,000 . The second automobile, with a market value of $19,000, is unsold at the end of 2014 and it remains in Chevrolet's inventory. The transactions just described contribute how much to GDP for 2014?
a. $20,000
b. $37,000
c. $38,000
d. $39,000
d
You might also like to view...
According to supply-side economists, lowering corporate income taxes
a. results in higher wages without creating higher levels of labor productivity b. creates greater income equality c. checks the expansion of real GDP and employment d. stimulates investment and spurs on economic growth e. is a disincentive to producers who rely on tax credit for investment
The law of increasing costs states that
A. opportunity costs decrease as more of one good is produced. B. increasing resource prices are inevitable because of scarcity. C. opportunity costs increase as more of one good is produced. D. resources can be easily adapted to the production of any good.
One reason stagflation is difficult to recover from is because:
A. less output requires less inputs to be hired. B. prices tend to adjust more quickly downward than upward. C. wages are sticky downward. D. input prices increase with output prices.
A person should consume more of something when its marginal:
A. benefit exceeds its marginal cost. B. cost exceeds its marginal benefit. C. cost equals its marginal benefit. D. benefit is still better.