Sophia just bought shares of IBM stock for $20,000 and paid a $300 commission to her broker.How did this impact GDP?
A)GDP increased by $20,300
B)GDP increased by $300
C)GDP increased by $20,000
D)GDP increased by $19,700
E)it had no impact on GDP

Question

Quizplus · Accepted Answer

The $300 commission paid to the broker is a service and is included in GDP as it represents income for the broker. The purchase of the stock itself does not affect GDP as it is a financial transaction and not a production of goods or services.

Sophia Just Bought Shares of IBM Stock for $20,000 and Paid