You bought stock in 2010 for $100 and you sold it in 2012 for $200.You used a broker to sell the stock for you,and he charged you $20.This transaction contributed ________ to gross domestic product (GDP).
A) $200
B) $20
C) $220
D) $100
E) $120

Question

Quizplus · Accepted Answer

The broker's fee of $20 is the only part of the transaction that contributes to GDP, as it represents the service provided by the broker. The buying and selling of the stock itself does not contribute to GDP, as it is merely a transfer of ownership.

You Bought Stock in 2010 for $100 and You Sold