If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach,then
A)we also will have to account for spending on financial assets.
B)it will be very difficult to assign a fair market value to a used good.
C)we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.
D)we will have to account for the natural depreciation that a used good experiences.
E)consumption spending would need to be adjusted for depreciation.

Question

Quizplus · Accepted Answer

If used goods are counted as part of GDP using the expenditure approach, then we would be counting the value of the used goods both at the time of their production and at the time of their re-sale. This means they would be counted twice, which is not accurate. Therefore, this issue needs to be addressed to accurately include used goods in measuring GDP using the expenditure approach.

If the Purchase of Used Goods Was to Be Incorporated