The Gross National Product (GNP) measures the value of goods and services produced by a country's residents, regardless of where they are located. It does not include transactions involving used goods, such as used textbooks or houses, because these do not represent new production.

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The Sale of

Question 4

Multiple Choice

The sale of

A) a used textbook does enter GNP.
B) a used textbook does not enter GNP, but the sale of a used house does.
C) both a used textbook and a used house do not enter GNP.
D) a used house does not enter GNP, but the sale of a used book does.
E) the GNP does not include sale of used items priced below $1000.

Correct Answer: