Which of the Following Expenditures Associated with the Production of a New

question 272

Multiple Choice

Which of the following expenditures associated with the production of a new high-performance SUV will be directly included in GDP?

• A) the sale of bonds to finance the construction of the assembly plant
• B) the purchase of used welding robots to assemble to vehicles
• C) the purchase of new tires to be installed on the new vehicles
• D) the purchase of new machine tools to manufacture the engines

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Definitions:

U.S. Consumers

Individuals or households in the United States that purchase goods and services for personal use.

Domestic Consumers

Households or persons in a country acquiring goods and services for individual use.

Domestic Producers

Businesses or individuals within a country that produce goods or services.

Exports

Goods and services sold by a country to other countries.