Which One of the Following Transactions Would Be Included in GDP

question 190

Multiple Choice

Which one of the following transactions would be included in GDP?

• A)Ms.Kim pays $50 for a used picture frame at a neighborhood garage sale.
• B)Mr.Doe donates $500 to his town's junior college scholarship fund.
• C)Ms.Bartolini pays $500 to fix the front end of her car damaged in a recent accident.
• D)Ms.Smith pays $5,000 to purchase 100 shares of Microsoft stock.

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Definitions:

Par Value

The nominal or face value of a stock or bond, representing the minimum amount set by the issuing company.

State Government

The organization through which political authority is exercised at the state level, governing over a specific geographical area.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often entitling shareholders to fixed dividends ahead of common shareholders.

Less Risky

Less risky describes an investment or action that has a lower likelihood of resulting in loss or lower variability in its returns compared to other options.