Which of the Following Transactions Would Be Included in GDP

question 23

Multiple Choice

Which of the following transactions would be included in GDP for 2015?

• A)In February 2015,Amanda sells a 2009 Hyundai to Isabella.
• B)In March 2015,Amanda buys a ticket to visit a zoo in Florida.She visits the zoo in February 2016.
• C)In November 2015,Isabella eats onions that she harvested from her backyard garden in October 2015.
• D)All of the above are correct.

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Definitions:

Excess Capacity

A scenario where a firm or industry has unused production resources, leading to inefficiencies and lowered profitability.

Productive Inefficiency

A situation where resources are not used in the most cost-effective way, resulting in a higher production cost than necessary.

Allocative Inefficiency

A situation where resources are not allocated efficiently, leading to a mismatch between what is produced and what consumers actually demand, causing wastage and loss of potential welfare.

Monopolistically Competitive

Refers to a market structure where many firms sell products or services that are similar but not perfect substitutes, with some ability to set prices.