If a Car Is Produced in Detroit in 2013 but Not

question 153

Multiple Choice

If a car is produced in Detroit in 2013 but not sold until 2014, it should be included in _____ GDP, and its value should be counted in _____.

• A) 2013's; inventory changes
• B) 2013's; durable goods
• C) 2014's; durable goods
• D) 2014's; personal consumption expenditures

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Definitions:

Equitable Distribution

The fair and just allocation of resources among members of a community or economy.

Cultural Revolution

The Cultural Revolution was a sociopolitical movement in China, initiated by Mao Zedong in 1966, aiming to preserve Chinese Communism by purging remnants of capitalist and traditional elements from Chinese society.

Great Leap Forward

A movement led by Mao Zedong in China between 1958 and 1962 aimed at rapidly transforming China into a socialist society through rapid industrialization and collectivization, which unfortunately led to widespread famine.

Central Planning

A system of economy in which all choices about the creation and allocation of goods and services are made by the government or a central body.