Related to the Economics in Practice on P

question 218

Multiple Choice

Related to the Economics in Practice on p. 107: The value of the fees charged by eBay to sellers who use eBay is

• A) counted in U.S. GDP.
• B) only counted in U.S. GDP if the seller is in the U.S.
• C) only counted in U.S. GDP if the product being sold is new.
• D) never counted in U.S. GDP.

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Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service.

Machine Hours

A measurement of the amount of time a machine is operated, used in allocating manufacturing costs to products.

Annual Overhead Costs

The total of all expenses that are not directly tied to the production of goods or services within one year.

Overhead Costs

Expenses required to run a business that are not directly related to the production of goods or services, such as rent, utilities, and administrative salaries.