Which of the Following Would Be Directly Counted in GDP

question 189

Multiple Choice

Which of the following would be directly counted in GDP in 2014?

• A)kitchen cabinets purchased from Home Depot in 2014 to be installed in a house built in 1997
• B)kitchen cabinets built in 1887,extracted from the 1887 home,and installed in a brand new country-style home
• C)kitchen cabinets built in 1887,extracted from the 1887 home,and installed in a farm house built in 1950
• D)none of the above

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Definitions:

Contribution Margin

The amount by which the sale of products or services exceeds variable costs, contributing to the coverage of fixed costs and profit generation.

Controllable Fixed Costs

Fixed costs that can be adjusted or influenced by the decisions of management in the short term, such as advertising expenses.

Required Return

The minimum expected return an investor demands for an investment, reflecting its risk level.

Investment Centers

Business units or departments that are directly responsible for generating returns on assets allocated to them.