The Calculation of the Final Goods and Services Sold in an Economy

question 359

Multiple Choice

The calculation of the final goods and services sold in an economy would NOT include

• A) the purchase of a lawnmower by a household.
• B) General Motors' purchases of tires for new automobiles.
• C) Ford Motor Company's purchase of a new industrial robot to be used to produce cars.
• D) the purchase of a service by a household.

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Definitions:

Nongovernmental Regulator

An organization that has regulatory or oversight powers over certain practices or industries but is not an official governmental agency, such as FINRA.

Stop-buy Orders

An order to purchase a security when its price reaches a specific level, used to limit loss or enter a market as prices rise.

Short Sales

The selling of a security that is not owned by the seller, with the intention of buying it back later at a lower price.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to ensure account stability against market fluctuations.