Which of the Following Transactions Adds to U

question 176

Multiple Choice

Which of the following transactions adds to U.S.GDP for 2006?

• A)In 2006, Marvin Windows manufactures 20 windows that will eventually be installed in an office building in Minneapolis.The windows remain in Marvin's inventory at the end of 2006.
• B)An Irish marketing consultant works in Boston during the summer of 2006 and earns $30,000 during that time.
• C)When John and Jennifer were both single, they lived in separate apartments and each paid $750 in rent.John and Jennifer got married in 2006 and they bought a house that, according to reliable estimates, could be rented for $1,600 per month.
• D)All of the above transactions adds to GDP for 2006.

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Definitions:

Positive Supply

A situation in which the quantity of goods or services offered for sale increases as the price increases, adhering to the law of supply.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at various prices.

Plaster

A building and sculpting material made from a mixture of water, gypsum, and sometimes fibers, used for coating walls and ceilings.

Labor

The physical and mental effort expended by individuals in the production of goods and services as part of an economy.