Which of the Following Will Be Counted as an Expenditure

question 81

Multiple Choice

Which of the following will be counted as an expenditure in the measurement of GDP? (Assume that none of the transactions is concealed from the relevant authorities. )

• A)the value of a used automobile that remains unsold on the dealer's lot
• B)purchase of a lamp at a neighborhood garage sale
• C)purchase,using foodstamps,of a loaf of bread
• D)payment by a parent to her child for doing household laundry
• E)purchase of flour by a bakery

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Definitions:

Book Value

The net value of a company's assets minus its liabilities and intangible assets, often used to evaluate a company's worth.

Fully Depreciated

Refers to an asset that has reached the end of its useful life for accounting purposes, having no remaining book value.

Gain

A financial increase in the value of an asset or a rise in the value of an investment, excluding the amounts invested or cost incurred to achieve the gain.

Book Value

The net value of an asset or company based on its balance sheet accounts, calculated as assets minus liabilities.