Stock and Bond Sales Are Not Included in GDP Because

question 39

Multiple Choice

Stock and bond sales are not included in GDP because they

• A)can be sold online.
• B)are not sold in the country in which they are produced.
• C)are not goods and services.
• D)have volatile prices.
• E)represent corporate production.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales volume.

Fixed Costs

Fixed costs include payment for rent, employee salaries, and insurance expenses, which do not vary with production or sales volume.

Operating Income

A measure of a company's profitability from its regular business operations, excluding income and expenses from non-operating activities.

Incremental Costs

Costs that change as a result of a new policy, project, or decision, essentially the difference in total costs between two alternatives.