Which of the following is counted as part of GDP?
A)a bakery buying 100 pounds of cake flour
B)the purchase of a used Ford by a U.S.citizen
C)a social security payment received by a retired teacher
D)none of the above

Question

Which of the following is counted as part of GDP?
A)​a bakery buying 100 pounds of cake flour
B)​the purchase of a used Ford by a U.S.citizen
C)​a social security payment received by a retired teacher
D)​none of the above

Quizplus · Accepted Answer

GDP measures the total value of all final goods and services produced within a country's borders in a specific time period. A) is not counted because it is an intermediate good, not a final product. B) is not included because it is a transaction involving a used good, not the production of a new good or service. C) is a transfer payment and does not reflect the production of new goods or services.

Which of the Following Is Counted as Part of GDP