Which of the Following Transactions Would Increase GDP

question 59

Multiple Choice

Which of the following transactions would increase GDP?

• A) a new tricycle purchased at a department store sale by the parents of a three-year-old child
• B) the retirement check your uncle received for spending 25 years in the Marine Corps
• C) the five shares of Microsoft stock your grandparents gave you for making an A in economics
• D) the $200 you lost when your wallet was stolen

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Definitions:

Demand Curve

A chart that illustrates how the quantity of a product that consumers are ready to buy varies with its price.

Decrease in Demand

Refers to a situation where consumers' desire to purchase goods or services at a given price level decreases, leading to a leftward shift in the demand curve.

BCG Portfolio Planning Model

A strategic business tool developed by the Boston Consulting Group to help organizations prioritize their investments across different business units based on market growth and market share.

Market Growth Rate

A measure of the increase in the size or value of a market for a product or service over time.