Which of the Following Would Be Directly Counted in GDP

question 173

Multiple Choice

Which of the following would be directly counted in GDP in 2018?

• A)kitchen cabinets purchased from Home Depot in 2018 to be installed in a house built in 1997
• B)kitchen cabinets built in 1887,extracted from the 1887 home,and installed in a brand new country-style home
• C)kitchen cabinets built in 1887,extracted from the 1887 home,and installed in a farm house built in 1950
• D)none of the above

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Definitions:

Isoquant

A curve that represents all combinations of inputs that result in the production of a given level of output.

Output

The quantity of goods or services produced by a firm, industry, or economy in a specified period.

Production Function

An equation that quantifies the output that can be generated from different combinations of factor inputs, reflecting the efficiency and technology of the production process.

Returns To Scale

The change in output resulting from a proportional change in all input factors; identifies if output increases at a faster, equal, or slower rate than inputs.