In 2015, Janice Quinn Sells a Five-Year-Old Car to Used

question 129

Multiple Choice

In 2015, Janice Quinn sells a five-year-old car to Used Car, Inc. for $6,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $6,500. What is the contribution of these transactions to GDP in the year 2015?

• A) $0
• B) $500
• C) $6,000
• D) $12,500

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Definitions:

Dividends Per Share

The amount of declared dividend for the year divided by the number of outstanding shares of the company's stock.

Common Stockholders

Individuals or entities that own shares of common stock in a company, granting them the right to vote at shareholder meetings and receive dividends.

Earnings Distribution

It is the way in which a company allocates its earnings among shareholders, reinvestment into the business, or other financial obligations.

Horizontal Analysis

This is a financial analysis method that compares historical financial information over a series of reporting periods to identify trends and growth patterns.