Tyler and Camille both live in Oklahoma.A new-car dealer in Oklahoma bought a new car from the manufacturer for $17,000 and sold it to Tyler for $20,000.Later that year,Tyler sold the car to Camille for $15,000.By how much did these transactions contribute to U.S.GDP for the year?

Question

Quizplus · Accepted Answer

Only the sale from the new-car dealer to Tyler ($20,000) contributes to U.S. GDP as it is the only transaction that represents the creation of new economic activity. Tyler's subsequent sale to Camille ($15,000) does not contribute to GDP as it is simply a transfer of ownership of an existing good. Therefore, the amount that contributed to GDP is $20,000.

Tyler and Camille Both Live in Oklahoma