Which One of the Following Would Be Included in the Calculation

question 53

Multiple Choice

Which one of the following would be included in the calculation of GDP by the expenditure approach?

• A)the cost of new kitchen cupboards when you renovate your house
• B)the income you pay to your gardener
• C)the purchase of 20 shares of a new issue of IBM stock
• D)the purchase of an eighteenth century work of art
• E)the value of your brother's services when he mows the lawn for the family

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Definitions:

Zero Price Elasticity

A situation where the demand for a good or service remains unchanged regardless of changes in its price.

Equilibrium Economic Rent

The excess returns to a factor of production over its opportunity cost when the market is in equilibrium, ensuring no incentive for resources to move.

Nationalization

The process by which a government takes control of a company or industry, often turning it from private to state ownership.

Scarce Resource

A resource that is limited in availability and cannot meet all demands placed on it by humans wanting unlimited access.