The Gross Domestic Product (GDP) of a country is a measure of all goods and services produced within a country's borders in a specific time period. It includes all consumer, investment, and government spending, as well as trade balance (exports minus imports).

Let's analyze each of the options:

A. A family purchasing a 10-year-old used car from a neighbor: This would not be included in the GDP as it is a transaction of a used good. GDP only counts new production.

B. A local company paying dividends to its shareholders: This would not be included in the GDP. Dividends are a distribution of a portion of a company's earnings and do not represent production of new goods or services.

C. A construction company building a new commercial office complex: This would be included in the GDP. It is an example of investment spending, which is a component of GDP. The construction of the office complex represents new production.

D. A citizen sending a gift of money to a relative in another country: This would not be included in the GDP. It is a transfer of money, not the production of a good or service.

So, the correct answer is C. A construction company building a new commercial office complex.

Question

The Gross Domestic Product (GDP) of a country is a measure of all goods and services produced within a country's borders in a specific time period. It includes all consumer, investment, and government spending, as well as trade balance (exports minus imports).

Let's analyze each of the options:

A. A family purchasing a 10-year-old used car from a neighbor: This would not be included in the GDP as it is a transaction of a used good. GDP only counts new production.

B. A local company paying dividends to its shareholders: This would not be included in the GDP. Dividends are a distribution of a portion of a company's earnings and do not represent production of new goods or services.

C. A construction company building a new commercial office complex: This would be included in the GDP. It is an example of investment spending, which is a component of GDP. The construction of the office complex represents new production.

D. A citizen sending a gift of money to a relative in another country: This would not be included in the GDP. It is a transfer of money, not the production of a good or service.

So, the correct answer is C. A construction company building a new commercial office complex.

Knowee AI · Accepted Answer

The Gross Domestic Product (GDP) of a country is a measure of all goods and services produced within a country's borders in a specific time period. It includes all consumer, investment, and government spending, as well as trade balance (exports minus imports).

Let's analyze each of the options:

A. A family purchasing a 10-year-old used car from a neighbor: This would not be included in the GDP as it is a transaction of a used good. GDP only counts new production.

B. A local company paying dividends to its shareholders: This would not be included in the GDP. Dividends are a distribution of a portion of a company's earnings and do not represent production of new goods or services.

C. A construction company building a new commercial office complex: This would be included in the GDP. It is an example of investment spending, which is a component of GDP. The construction of the office complex represents new production.

D. A citizen sending a gift of money to a relative in another country: This would not be included in the GDP. It is a transfer of money, not the production of a good or service.

So, the correct answer is C. A construction company building a new commercial office complex.

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