Transactions Involving Items Produced in the Past,such as the Sale

question 263

Multiple Choice

Transactions involving items produced in the past,such as the sale of a 5-year-old automobile by a used car dealership or the purchase of an antique rocking chair by a person at a yard sale,are

• A) included in current GDP because GDP measures the value of all goods and services sold in the current year.
• B) included in current GDP but valued at their original prices.
• C) not included in current GDP because GDP only measures the value of goods and services produced in the current year.
• D) not included in current GDP because these items have no current value.

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Definitions:

Investor

An individual or entity that allocates capital with the expectation of achieving a financial return, often by purchasing securities, real property, or other investment vehicles.

Doctrine of Respondeat Superior

A legal principle that holds an employer or principal legally responsible for the actions of an employee or agent when acting within the scope of their employment or authority.

Torts

Civil wrongdoings recognized by law as grounds for a lawsuit, typically resulting in injury or harm that constitutes the basis for a claim by the injured party.

Agents

Individuals or entities authorized to act on behalf of others in business transactions or legal matters.