Are the Following Transactions Included in the Calculation of the GDP

question 54

Essay

Are the following transactions included in the calculation of the GDP? Why?
a. books you buy from the university bookstore
b. purchase of government bonds
c. writing a cheque to your dentist for his services
d. purchase by a car manufacturer of tyres for the produced vehicles

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Definitions:

Profit-Maximizing Price

The price at which a company can make the most profit, considering the balance between price and quantity sold.

Short-Run Monopoly

A market structure where a single firm dominates the market temporarily, possibly due to patents or market conditions that are expected to change.

Profit-Maximizing Monopoly

A market situation where a single firm controls the entire market for a product or service, setting the price at a level that maximizes its profits.

Output Per Week

The total product or service quantity produced by a company or economy in a week.