In Measuring GDP, Which of the Following Is Included

question 28

Multiple Choice

In measuring GDP, which of the following is included?

• A) The value of shares and bonds bought and sold.
• B) The value of preparing meals at home.
• C) The value of increases in business inventories.
• D) The value of used goods when they are sold.
• E) The value of durable consumption goods but not the value of nondurable consumption goods.

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Definitions:

Quota Limit

A government-imposed trade restriction limiting the number or value of goods that can be imported or exported during a specified time frame.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price is charged for a product, with the aim of ensuring affordability by limiting how much prices can increase.

Quota Rent

The economic rent received by the holder of a production or import quota, which can be realized by selling the product at a higher price than the world price due to the quota limitation.

Taxi Medallion

A licensure medallion required for a taxi to operate legally in many cities, often representing a significant cost for taxi drivers and companies.