Which of the Following Items Are NOT Counted in U

question 27

Multiple Choice

Which of the following items are NOT counted in U.S. GDP?

• A)your purchase of a new Ford Mustang
• B)your purchase of new tires for your old car
• C)GM's purchase of tires for new cars
• D)a foreign consumer's purchase of a new Ford Mustang

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Definitions:

Subsidiaries

Companies that are controlled by another company, known as the parent company, through ownership of the majority of voting stock.

Intra-entity Gains

Profits realized from transactions within the same entity, often eliminated in preparation of the consolidated financial statements.

Separate Tax Returns

Tax filings made by individuals or married couples separately, rather than a joint tax return, often to optimize tax liability.