Until Recently, George Lived in a Home That Was Newly

question 30

Multiple Choice

Until recently, George lived in a home that was newly constructed in 2005. In 2005, he paid $200,000 for the brand new house. He sold the house in 2006 for $225,000. Which of the following statements is correct regarding the sale of the house?

• A) The 2006 sale increased 2006 GDP by $225,000 and had no effect on 2005 GDP.
• B) The 2006 sale increased 2006 GDP by $25,000 and had no effect on 2005 GDP.
• C) The 2006 sale increased 2006 GDP by $225,000; furthermore, the 2006 sale caused 2005 GDP to be revised upward by $25,000.
• D) The 2006 sale affected neither 2005 GDP nor 2006 GDP.

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Definitions:

Efficiency

The ratio of useful output to total input, measuring how effectively resources are utilized.

Process Time

The time required to complete a particular process, often including the steps of production or task execution.

Bottleneck Management

The process of identifying, managing, and mitigating bottlenecks or points of congestion that slow down production or workflow in an operation.

Work Orders

A formal document that outlines the details for completing a specific task or job, typically including what needs to be done, by whom, and by when.