The Patersons Bought a Home That Was Newly Constructed in 2007

question 259

Multiple Choice

The Patersons bought a home that was newly constructed in 2007 for $275,000. They sold the home in 2009 for $205,000. Which of the following statements is correct regarding the sale of the house?

• A)The 2009 sale increased 2009 GDP by $205,000 and had no effect on 2007 GDP.
• B)The 2009 sale reduced 2009 GDP by $70,000 and had no effect on 2007 GDP.
• C)The 2009 sale increased 2009 GDP by $205,000; and caused 2007 GDP to be revised downward by $70,000.
• D)The 2009 sale affected neither 2007 GDP nor 2009 GDP.

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Definitions:

Inductive Reasoning

A method of reasoning in which specific observations or data are used to make a broader generalization.

Sociological Study

The examination of social behaviors, structures, and functions through various methods of empirical investigation and critical analysis to develop a body of knowledge about human social activity.

Stereotype

An oversimplified set of beliefs about the members of a social group or social stratum that is used to categorize individuals of that group.

Secondary Data

This refers to data that has been previously collected and analyzed by someone else, and is then used for a new research project.