Which of the Following Expenditures Would Be Included in GDP

question 18

Multiple Choice

Which of the following expenditures would be included in GDP for this year?

• A) The purchase of a new car.
• B) The purchase of a new tyre by Holden for a new car.
• C) The purchase of a used car.
• D) All of these.

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Definitions:

Variable Costs

Costs that vary directly with the level of production or service delivery.

Fixed Costs

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

Fixed Cost

A cost that does not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Overhead Cost

Indirect expenses related to the operation of a business, such as rent, utilities, and administrative salaries, that are not directly tied to the production of goods or services.