Which of the Following Is Included in GDP

question 164

Multiple Choice

Which of the following is included in GDP?

• A) A newly laid-off worker receives his $400 unemployment compensation check from the state government.
• B) A college senior receives a $1,000 graduation gift from a grandparent.
• C) You buy a $12 snow shovel to have on hand for the next snow storm.
• D) You purchase $300 worth of clothes from a thrift shop selling second-hand clothing.

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Definitions:

Diminishing-Balance Method

A method of calculating depreciation on an asset, where the depreciation expense decreases over time, applying a constant rate to the reducing book value of the asset.

Canada Revenue Agency

The federal agency responsible for administering tax laws for the Canadian government and various provinces and territories, as well as overseeing various social and economic benefit and incentive programs through taxation.

Income Tax Return

A document filed with the government that reports income, expenses, and other pertinent tax information.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, reflecting consumption, wear and tear, or obsolescence of the asset.