Which of the Following Transactions Is Included in GDP

question 5

Multiple Choice

Which of the following transactions is included in GDP?

• A)You buy a used car for $10,000.
• B)An unemployed worker receives a check for $450 as unemployment benefits.
• C)You buy a one-acre lot in Florida where you plan to build a beach house.
• D)Toyota builds 1,000 Accords in Kentucky at a cost of $25,000 each but is unable to sell them and, therefore, they are added to inventory.

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Definitions:

Canadian Common Stocks

Shares representing equity ownership in corporations based in Canada, entitling holders to vote on corporate matters and receive dividends.

Long Bonds

Bonds with a long duration to maturity, typically over 10 years, often associated with higher risk but higher yield.

Capital Gains Yield

The price appreciation component of the total return on an investment, calculated as the increase in the investment's price divided by its initial price.

Dividends

Profit distributions paid out to shareholders by a company.