Which of the Following Transactions Would NOT Contribute to the GDP

question 123

Multiple Choice

Which of the following transactions would NOT contribute to the GDP?

• A) the purchase of 100 shares of General Motors stock
• B) the purchase of a new Chevrolet automobile
• C) the purchase of a package of chewing gum from the convenience store
• D) the purchase of gasoline for your automobile

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Definitions:

Price Decrease

A reduction in the cost at which goods or services are sold to consumers.

Budget Constraint

The limitations on the goods and services available for purchase, based on the income and prices, reflecting the trade-off between different choices.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, and other forms of financial income.

Budget Constraint

The limit set by available resources, defining the combination of goods or services that a consumer can afford.