In 2015, Janice Quinn sells a five-year-old car to Used Car, Inc. for $6,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $6,500. What is the contribution of these transactions to GDP in the year 2015?

Question

Quizplus · Accepted Answer

Used Car, Inc. added $500 value to the transaction for the service to facilitate car sales, which is the difference in the price of buying the used car versus the price of selling the same car to a new owner.

In 2015, Janice Quinn Sells a Five-Year-Old Car to Used