Asked by Susan Hudak on May 01, 2024
Verified
Which of the following would NOT be included in this year's GDP?
A) The purchase of 200 shares of Coca-Cola stock
B) The replacement of a transmission on a 1980 Buick
C) The commission charged by a real estate agent
D) The services of a hair stylist
E) The tuition fee for a course in comparative literature
GDP
Gross Domestic Product; a measure of the economic performance of a country, quantifying the total value of all goods and services produced over a specific time period.
Transmission Replacement
The process of removing a vehicle's failed transmission and installing a new or refurbished one to restore proper function.
- Discern the components and activities accounted for or overlooked in the estimation of GDP.
Verified Answer
PC
Portia CopelandMay 06, 2024
Final Answer :
A
Explanation :
The purchase of stocks or securities is a financial transaction that does not directly impact current production or income, and thus is not included in GDP.
Answer: B
The replacement of a transmission involves the purchase of a good (a transmission) and the payment for a service (installation), making it a part of GDP.
Answer: C
The commission charged by a real estate agent is payment for a service provided by the agent, and is a part of GDP.
Answer: D
The services provided by a hair stylist are considered a part of the service sector, and are included in GDP.
Answer: E
The tuition fee for a course in comparative literature is payment for an educational service, and is a part of GDP.
Answer: B
The replacement of a transmission involves the purchase of a good (a transmission) and the payment for a service (installation), making it a part of GDP.
Answer: C
The commission charged by a real estate agent is payment for a service provided by the agent, and is a part of GDP.
Answer: D
The services provided by a hair stylist are considered a part of the service sector, and are included in GDP.
Answer: E
The tuition fee for a course in comparative literature is payment for an educational service, and is a part of GDP.
Learning Objectives
- Discern the components and activities accounted for or overlooked in the estimation of GDP.