Which of the Following Will Be Counted as an Expenditure

question 81

Multiple Choice

Which of the following will be counted as an expenditure in the measurement of GDP? (Assume that none of the transactions is concealed from the relevant authorities. )

• A)the value of a used automobile that remains unsold on the dealer's lot
• B)purchase of a lamp at a neighborhood garage sale
• C)purchase,using foodstamps,of a loaf of bread
• D)payment by a parent to her child for doing household laundry
• E)purchase of flour by a bakery

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Definitions:

Bargain Purchase

A situation where an entity acquires another entity's assets for less than their fair market value, often leading to a gain in the acquirer's financial statement.

Investment Account

An account held at a financial institution that is used for the purpose of investing in securities such as stocks, bonds, and mutual funds.

Liabilities

Liabilities are the economic debts or responsibilities that a business has to other entities, which are to be fulfilled over time by transferring economic resources.