Which of the Following Items Is Included in the Calculation

question 36

Multiple Choice

Which of the following items is included in the calculation of GDP?

• A)Purchase of 100 shares of General Motors stock.
• B)Purchase of a used car.
• C)The value of a homemaker's services.
• D)Sale of Gulf War military surplus.
• E)None of these would be included.

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Definitions:

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, and insurance, remaining constant regardless of business activity levels.

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.

Average Total Cost

The total cost of production divided by the quantity of output produced. It includes both fixed and variable costs.