If you buy a five-year-old TV from a friend,the amount you paid for the TV is
A)not included in this year's GDP.
B)always added to investment but not consumption.
C)always added to consumption expenditures but not investment.
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)included in this year's GDP only if the TV set was manufactured in Australia.

Question

Quizplus · Accepted Answer

When you buy a used TV from a friend, it is not considered a part of this year's Gross Domestic Product (GDP) because it is not a newly produced good or service. GDP only includes newly produced goods and services.

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