Suppose That an Apartment Complex Converts to a Condominium Where

question 9

Multiple Choice

Suppose that an apartment complex converts to a condominium where the renters are now owners of their former apartments. What is included in GDP?

• A)The rent was included in GDP; the purchases of the condominiums are not.
• B)The rent was included in GDP, and so is the purchase of the condominiums.
• C)The rent was not included in GDP; the purchases of the condominiums are.
• D)The rent was not included in GDP; the purchases are not included either.

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Definitions:

Liability

A legal responsibility or obligation, typically involving financial compensation for loss or damage caused to another party.

Corporate Officer

An individual holding an executive position within a corporation, often vested with specific powers and responsibilities by the bylaws or board of directors.

Day-To-Day Operations

The routine activities necessary for a business or organization to function efficiently, encompassing everything from customer service to managing finances.

Negligence Or Mismanagement

Failures in duty or improper handling of responsibilities, often leading to harm or loss, due to carelessness or lack of competence.