In 2011, Richard Buys a 2003 Chevrolet Minivan from a Neighbor.Will

question 115

Multiple Choice

In 2011, Richard buys a 2003 Chevrolet minivan from a neighbor.Will this be counted in the GDP for 2011?

• A) Yes
• B) No
• C) Yes, if sales tax is paid
• D) No, because the purchase was from an individual not a dealer

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Definitions:

Scarce Resources

Resources that are limited in availability and cannot satisfy all the various uses for them, leading to competition and the need for allocation.

Production Possibility Frontier

The Production Possibility Frontier (PPF) is a graphical representation that shows the maximum quantity of two goods or services that a society can produce, given fixed resources and technology, highlighting the trade-offs in production choices.

Labor Force

The total number of people, including both the employed and the unemployed, who are of working age and seeking employment.

Opportunity Cost

The value of the next best alternative that is foregone when making a choice.