Which of the Following Is Included in GDP

question 119

Multiple Choice

Which of the following is included in GDP?

• A)the purchase of 100 shares of Microsoft stock
• B)the purchase of a 1965 Ford Mustang
• C)Social Security payments from the U.S. government to retired people
• D)the purchase of a ticket to a Lady Gaga concert

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Definitions:

Net Working Capital

The gap between a business's current assets and its current liabilities, showcasing the firm's liquidity.

Capital Cost Allowance (CCA)

The Capital Cost Allowance (CCA) is a tax deduction available in Canada that represents a yearly depreciation charge for capital assets used in business activities, allowing businesses to write off the cost of assets over time.

Tax Rate

The percentage at which an individual or corporation is taxed on their income or profit.

Required Return

The minimum profit that investors expect to earn on their investment to compensate for the risk taken.