If you sell your textbook to your friend this year, does the sale count in this year's GDP?
What will be an ideal response?
No, the sale would not count in this year's GDP because it is the sale of a used item. The sale of used items is not counted in GDP because GDP measures goods and services produced within a specified time frame. Unless your textbook was produced in this year, it will not count in this year's GDP. And, even if was produced this year, it has already been included in this year's GDP when it was initially sold as a new textbook.
You might also like to view...
A tax rate increase necessarily leads to an increase in tax revenue for the government
Indicate whether the statement is true or false
Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium quantity of beef will Question 7 options:
A. stay the same. B. perhaps increase, decrease, or stay the same, but more information is needed to determine which it does. C. definitely either stay the same or decrease. D.decrease. E. increase.
If the United States has reason to believe that the trade policies of another country violates the GATT, then to which organization do they send their complaint to?
A. the World Trade Organization (WTO) B. the International Monetary Fund (IMF) C. the United Nations (UN) D. the World Bank (WB)
The De Beers Company blocked competition
A) by controlling the supply of most of the world's high-quality bauxite, the mineral used to produce aluminum. B) in the diamond market by controlling the output of most of the world's diamond mines. C) in the market for fresh and frozen cranberries because it controls about 80 percent of the cranberry crop. D) because it has lower production costs than other department stores due to economies of scale.