Which of the Following Transactions Adds to U

question 108

Multiple Choice

Which of the following transactions adds to U.S.GDP for 2006?

• A) In 2006,Ashley sells a car that she bought in 2002 to William for $5,000.
• B) An American management consultant works in Mexico during the summer of 2006 and earns the equivalent of $30,000 during that time.
• C) When John and Jennifer were both single,they lived in separate apartments and each paid $750 in rent.John and Jennifer got married in 2006 and they bought a house that,according to reliable estimates,could be rented for $1,600 per month.
• D) None of the above transactions adds to U.S.GDP for 2006.

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Definitions:

Legal Contracts

Legal Contracts are legally binding agreements between two or more parties, which outline the terms and conditions of a particular arrangement or transaction.

Acts of Owners

These are actions taken by the owners of a business, such as investing additional capital, withdrawing funds, or making decisions that impact the company's operations and policies.

Government Regulation

Laws and rules established by government bodies that businesses must comply with in their operations.

Corporate Form

A legal structure of a business organization that is separate from its owners, with distinct rights and responsibilities.