Which of the Following Transactions Adds to U

question 47

Multiple Choice

Which of the following transactions adds to U.S.GDP for 2015?

• A)In 2015,Ann sells a car that she bought in 2011 to Bill for $7,000.
• B)An American management consultant works in Canada during the summer of 2015 and earns the equivalent of $40,000 during that time.
• C)When Ken and Kim were both single,they lived in separate apartments and each paid $800 in rent.Ken and Kim got married in 2015 and they bought a previously unoccupied house that,according to reliable estimates,could be rented for $1,700 per month.
• D)None of the above transactions adds to U.S.GDP for 2015.

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Definitions:

Direct Costs

Expenses that can be directly attributed to a specific product, job, or project.

Conversion Costs

Expenses related to transforming raw materials into finished products, encompassing both labor efforts and overhead charges.

Manufacturing Overhead Cost

All indirect costs associated with the production process, such as utilities, maintenance, and factory equipment depreciation.

Units Produced

The quantity of items or goods made or produced by a company within a particular period.