Which of the Following Would Be Directly Counted in GDP

question 7

Multiple Choice

Which of the following would be directly counted in GDP in 2012?

• A) kitchen cabinets purchased from Home Depot in 2012 to be installed in a house built in 1997
• B) kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a brand new country-style home
• C) kitchen cabinets built in 1887, extracted from the 1887 home, and installed in a farm house built in 1950
• D) none of the above

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Definitions:

Liabilities

Financial obligations or debts a company owes to others, such as loans, accounts payable, and mortgages.

Assets

Resources owned by a company that have economic value and are expected to provide future benefits.

Revenues

The total amount of money earned by a company from its normal business activities, typically from the sale of goods and services to customers.

Trial Balance

A financial worksheet where all ledger balances are totaled into debit and credit columns which balance equally.