Which of the Actions Below Will Not Increase GDP

question 25

Multiple Choice

Which of the actions below will not increase GDP?

• A)Bears prowl suburban areas,overturning garbage cans so that the town must hire more sanitation workers to clean up.
• B)Vandals spray paint all over brick buildings,increasing business for paint removal services.
• C)An installer of automobile tires takes a knife to the tires of cars parked in his neighborhood.
• D)A homemaker spends $20 taking the family to lunch at Burger King instead of spending the $20 to buy food to prepare at home.
• E)A consumer has a tune-up done on his pick-up truck at the local garage.

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Definitions:

Consolidated Retained Earnings

The cumulative amount of earnings not distributed as dividends to shareholders, reported in the consolidated financial statements of a parent company and its subsidiaries.

Business Combination

A transaction or event where an acquirer gains control over one or more businesses, often through the acquisition of equity interests or assets.

Common Stock

Shares entitling their holders to dividends that vary in amount and may even be missed, depending on the fortunes of the company.

Fair Value

A financial accounting term referring to the estimated market value of an asset, liability, or company.