Which of the Following Transactions Would Be Included in GDP

question 79

Multiple Choice

Which of the following transactions would be included in GDP for 2010?

• A)In February 2010, Amanda sells a 1996 Honda Accord to Isabella.
• B)In February 2010, Amanda buys a ticket to visit a zoo in Florida. She visits the zoo in April 2011.
• C)In December 2010, Isabella eats onions that she harvested from her backyard garden in October 2010.
• D)All of the above are correct.

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Definitions:

High-low Method

A technique in managerial accounting used to estimate variable and fixed costs by analyzing the highest and lowest levels of activity.

Variable Cost Per Unit

The cost that varies with the level of output or activity, calculated on a per-unit basis.

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance.

Contribution Margin

The amount by which a product's sales price exceeds its variable costs, used to cover fixed costs and generate profit.