Which Item Would NOT Be Included in GDP

question 172

Multiple Choice

Which item would NOT be included in GDP?

• A) the dollar value of a repair job done by your cousin on her own car
• B) the dollar value of a lawyer's service
• C) new car sales by a local dealer
• D) production of new cars that were not sold in the current year

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.

Current Assets

Resources anticipated to be transformed into cash, sold, or utilized within a year or during the standard operational cycle of the company.

Fiscal Year

A one-year period that companies and governments use for accounting purposes and preparing financial statements, which may not align with the calendar year.

Natural Business Year

A fiscal year that ends when business activities have reached the lowest point in an annual operating cycle.