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Which of the following transactions is not included in GDP? Group of answer choices The purchases of shares in a bank that is traded on the Australian Stock Exchange All of the other options The purchase of a new car by a car rental company The purchase of a new building by the government. The new building will be used for a primary school.

Question

Which of the following transactions is not included in GDP? Group of answer choices

The purchases of shares in a bank that is traded on the Australian Stock Exchange

All of the other options

The purchase of a new car by a car rental company

The purchase of a new building by the government. The new building will be used for a primary school.

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Solution

Step 1: Understand the concept of GDP. Gross Domestic Product (GDP) measures the value of all final goods and services produced within a country in a given period. It includes all consumer, investment, and government spending, as well as exports, minus imports.

Step 2: Analyze the answer choices.

  • "The purchases of shares in a bank that is traded on the Australian Stock Exchange" is not included in GDP. Buying shares is a transfer of ownership and does not involve the production of new goods or services.

  • "The purchase of a new car by a car rental company" is included in GDP. This is an investment purchase of a new good.

  • "The purchase of a new building by the government. The new building will be used for a primary school." is included in GDP. This is a government spending on a new good.

Therefore, the correct answer is "The purchases of shares in a bank that is traded on the Australian Stock Exchange".

This problem has been solved

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