Which of the following would be included in the calculation of gross domestic product (GDP)?
A)The value of a used automobile purchased by Jim
B)The sale price of a new house purchased by Joe
C)The receipt of $100 in food stamps by Sandy
D)The $200 that Kurt spends on the purchase of bonds
E)The amount of money that Laurie receives as unemployment benefit after losing her job

Question

Quizplus · Accepted Answer

The sale price of a new house purchased by Joe would be included in the calculation of GDP as it represents a new addition to the economy's stock of physical goods and services. The value of a used automobile (A) is not included in GDP as it is not a newly produced good. Receipt of food stamps (C) and money received as unemployment benefits (E) are transfer payments and do not represent a new production of goods or services. The $200 spent on the purchase of bonds by Kurt (D) is not included in GDP as it does not represent a final good or service purchased by a consumer.

Which of the Following Would Be Included in the Calculation