Suppose that in 2008, ABC Corporation produced $6 million worth of natural gas pipes but was able to sell only $5 million worth. Is the remaining $1 million of unsold pipes part of GDP for 2008?

Question

Quizplus · Accepted Answer

The remaining $1 million of unsold pipes is still a part of the economy's output in 2008, regardless of whether or not they were sold. GDP measures the total value of goods and services produced within a country's borders, and these pipes were produced in the country during the year. They are not considered part of existing inventories (choice A), nor are they classified as changes in inventories (choices C and D) since they were never sold and never added to a company's inventory. Finally, they are still considered as part of the economy's output even if they were never sold (choice E).

Suppose That in 2008, ABC Corporation Produced $6 Million Worth