Which One of These Would Be Included in GDP Calculations

question 53

Multiple Choice

Which one of these would be included in GDP calculations?

• A) a windshield purchased by General Motors
• B) a hamburger purchased by a hungry restaurant patron
• C) petroleum purchased by a refiner from the company that drilled it
• D) nails purchased by a building contractor

---

Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a company's assets over time.

Double-Declining-Balance Method

A method of accelerated depreciation which computes depreciation expense by doubling the straight-line rate and applying it to the book value of the asset at the beginning of each year.

Depreciation Expense

Depreciation expense is the allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decrease in value.

Salvage Value

The estimated resale value of an asset at the end of its useful life, typically considered in depreciation calculations.