Which of the following will be included in this year's GDP?
A) a Pablo Picasso (1881-1973) painting purchased this year by the art museum
B) the purchase of a used textbook by your friend
C) the purchase of 100 shares of Google stock through your broker
D) the purchase of an insurance policy for your home

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) measures the value of all final goods and services produced within a country's borders in a specific time period. The purchase of an insurance policy for your home is considered a service and contributes to the GDP. In contrast, the purchase of a Pablo Picasso painting, a used textbook, and shares of stock do not add to the GDP as they are not production of new goods or services within the economy. The painting and textbook are considered transfers of existing assets, and buying shares is a financial transaction without the production of new goods or services.

Which of the Following Will Be Included in This Year's