If the Purchase of Used Goods Was to Be Incorporated

question 102

Multiple Choice

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then

• A)we also will have to account for spending on financial assets.
• B)we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.
• C)we will have to account for the natural depreciation that a used good experiences.
• D)it will be very difficult to assign a fair market value to a used good.
• E)consumption spending would need to be adjusted for depreciation.

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Definitions:

Shape Constancy

The perceptual phenomenon where the perceived shape of an object remains constant despite changes in the viewing angle or distance.

Retinal Image

The image projected onto the retina, which is the light-sensitive layer at the back of the eye.

Increasingly Larger

Describes a process or condition that grows or expands in size, volume, or quantity over time.

Distance

A measurement of the space between two points, often discussed in the context of physical space but also applicable in abstract senses.