Which of the following transactions would be included in Gross Domestic Product (GDP)?
A) The purchase of new tires by a family to replace worn out tires on the family car
B) The purchase of a used car
C) The purchase of 100 shares of General Motors stock
D) The purchase of 2 grams of cocaine

Question

Quizplus · Accepted Answer

Only the purchase of new tires by a family to replace worn out tires on the family car would be included in GDP as it represents a final good or service that contributes to the economy's production. The other options do not involve producing a final good or service, or are not legal transactions.

Which of the Following Transactions Would Be Included in Gross