Tesla Builds a New Vehicle,and Completes It in December 2015

question 99

Multiple Choice

Tesla builds a new vehicle,and completes it in December 2015.It sells the vehicle in January 2016.The value of this vehicle affects U.S.GDP

• A)​for 2015 only,since it was completed in December of 2015.
• B)​for both 2015 and 2016.
• C)​for 2016 only,when it is sold to the buyer.
• D)​for neither year if it is sold to a citizen of Canada.

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Definitions:

Market Value

The price at which trading of a service or asset is currently occurring in the market.

Cost of Equity

A theoretical payment made by a corporation to its stockholders to reward them for the risk involved in investing their funds.

Dividends

Money that a corporation gives to its members of shareholding, often coming from the profits of the company.

Beta

A measure of a stock's volatility in relation to the overall market; a higher beta indicates greater volatility and risk.