Suppose an Apartment Complex Converts to a Condominium,so That the Former

question 123

Multiple Choice

Suppose an apartment complex converts to a condominium,so that the former renters are now owners of their housing units.

• A)The rent was included in GDP; the purchases of the condominiums are not included in GDP.
• B)The rent was included in GDP, and so are the purchases of the condominiums.
• C)The rent was not included in GDP; the purchases of the condominiums are included in GDP.
• D)The rent was not included in GDP, and neither are the purchases of the condominiums.

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Definitions:

Machine-Hours

A measure of the total hours that machinery is in operation during the production process.

Markup

The amount added to the cost of a product to create a price point that ensures profit for the company.

Selling Prices

The price at which goods or services are offered to buyers, determined by various factors including cost, demand, and competition.

Machine-Hours

A measure of the time machines are run, used in allocating manufacturing overhead to products.