If you buy a five-year-old TV from a friend, the amount you paid for the TV is
A)included in this year's GDP only if the TV set was manufactured in the United States.
B)always added to consumption expenditures but not investment.
C)always added to investment but not consumption.
D)added to investment if the TV is expected to last more than 5 additional years and added to consumption if the TV is expected to last less than 5 additional years.
E)not included in this year's GDP.

Question

Quizplus · Accepted Answer

The purchase of a used TV does not count towards GDP because GDP measures the value of new goods and services produced within a country in a given year.

If You Buy a Five-Year-Old TV from a Friend, the Amount