Suppose an Apartment Complex Converts to a Condominium (I

question 19

Multiple Choice

Suppose an apartment complex converts to a condominium (i.e., the renters become owners of their apartments) . What is included in GDP?

• A) The rent was included in GDP; the purchases of the condominiums are not included.
• B) The rent was included in GDP, and so is the purchase of the condominiums.
• C) The rent was not included in GDP; the purchases of the condominiums are included.
• D) The rent was not included in GDP; the purchases are not included either.

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Definitions:

Low-involvement Products

Goods that require minimal thought and effort from the consumer before purchase due to their routine nature or low price.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Replacement Traffic Signal

A new traffic light installed to replace an old or malfunctioning one, ensuring safety and efficient traffic flow.