Which of the following transactions would be counted toward this year's GDP?
A)General Motors purchases 10,000,000 tires from Firestone.
B)A 300-year-old painting is sold for $12 million.
C)A street gang earns $2 million from selling illegal drugs.
D)Your real estate agent earns $5,000 commission when you sell your 100-year-old house for $100,000.

Question

Quizplus · Accepted Answer

The commission earned by the real estate agent is a service provided in the current year, thus it is counted in this year's GDP. The other options involve intermediate goods, non-current production, or illegal activities, which are not included in GDP calculations.

Which of the Following Transactions Would Be Counted Toward This