Which of the Following Transactions Would Be Included in Gross

question 13

Multiple Choice

Which of the following transactions would be included in Gross Domestic Product (GDP) ?

• A) the purchase of new tires by a family to replace worn out tires on the family car
• B) the purchase of a used car
• C) the purchase of 100 shares of General Motors stock
• D) the purchase of 2 grams of cocaine

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Definitions:

Credit Terms

Conditions under which credit will be extended to a borrower, including repayment schedule, interest rate, and the duration of the loan.

Perpetual Inventory System

An inventory management system that tracks inventory levels in real-time, updating with every sale or purchase transaction.

Gross Method

An accounting method used in invoicing that records the full price of goods or services without deducting any sales discounts upfront.

Credit Terms

Conditions under which credit is granted, including repayment period, discount for early payment, and interest rate.