Which of the Following Would Be Included in GDP

question 146

Multiple Choice

Which of the following would be included in GDP?

• A)payment of the monthly telephone bill by Mr.Laconic
• B)the purchase of corporate stock by Steven Jones
• C)the purchase of a used limousine by Harold Abel
• D)the value of a pair of mittens your mother knitted for you
• E)the $300 George saved because he painted his own garage

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Definitions:

Variable Production Costs

Expenses that change in direct proportion to the level of production output.

Cost-Volume-Profit Analysis

An accounting method used to determine how changes in costs and volume affect a company's operating income and net income.

Contribution Format

An income statement format that separates fixed and variable costs, showing the contribution margin which covers fixed costs and profits.

Absorption Costing

A bookkeeping strategy that encompasses all production expenses, including direct materials, direct labor, and variable plus fixed overhead, into the pricing of a product.