Rhonda Sells a House She Has Owned for 15 Years

question 116

Multiple Choice

Rhonda sells a house she has owned for 15 years and starts living in a rented apartment.To make it more marketable,she buys carpeting that she has professionally installed and buys wallpaper that her daughter hangs.Which items would be included in this year's gross domestic product (GDP) ?

• A)The sale price of the house
• B)The cost of transporting all her furnitures to the new apartment
• C)The opportunity cost of Rhonda's daughter's time
• D)The opportunity cost of Rhonda's time
• E)The purchase price for carpet and wallpaper,and the installation fee for the carpet

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Definitions:

Antilapse Clause

In an insurance policy, a clause which states that the insured has a grace period in which to make an overdue payment.

Appraisal

An expert estimation of the value of property, typically real estate, art, or jewelry, often for the purpose of taxation, sale, or insurance.

Arbitration Clauses

Arbitration clauses are provisions in a contract that require the parties to resolve disputes through arbitration rather than through litigation in court.

Federal Law

Laws created and enforced by the federal government of a country, as opposed to state, local, or international laws.