Which of the Following Expenditures Would Be Included in GDP

question 21

Multiple Choice

Which of the following expenditures would be included in GDP for this year?

• A) The purchase of a new car.
• B) The purchase of a new tire by General Motors for a new car.
• C) The purchase of a used car.
• D) All of the above would be included.

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Definitions:

Capital Leases

A capital lease is a lease classified as an asset purchase for accounting purposes, whereby lessee records the leased asset as if it was bought.

Financing Leases

Long-term lease agreements that are categorized as a means of financing the acquisition of assets.

Civil Society

A realm of organized social life that is voluntary, self-generating, self-supporting, autonomous from the state, and bound by a legal order or set of shared rules.

Fortunate Fifth

Refers to the top 20% of the population in terms of income or wealth, often highlighted in discussions of economic inequality.