Which of the Following Transactions Would Be Included in GDP

question 69

Multiple Choice

Which of the following transactions would be included in GDP?

• A) The purchase of pencils
• B) The purchase of a Picasso painting
• C) The purchase of Telstra shares
• D) The purchase of a used truck

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Definitions:

Close Substitutes

Goods or services that can be used in place of each other with relative ease by consumers, based on similar features, functions, or effects.

Elastic

In economics, elasticity refers to the degree to which demand or supply responds to changes in price. High elasticity means a significant change in quantity with a small change in price.

Unit-elastic

A situation in which the percentage change in quantity demanded is equal to the percentage change in price, indicating a unitary elasticity of demand.

Labor Demand

Refers to the quantity of workers that employers are willing to hire at a given wage rate.