Economics 12th edition, Chapter 22 P. 485 asks Which of the following transactio

Question

Economics 12th edition, Chapter 22 P. 485 asks Which of the following transactions are included in gross domestic product, and by how much does each raise GDP?

a. Smith pays a carpenter $50,000 to build a garage

b. Smith purchases $10,000 worth of materials and builds himself a garage, which is worth $50,000.

c. Smith goes to the woods, cuts down a tree, and uses the wood to build himeself a garage that is worth $50,000.

d. The jones family sells its old house to the Reynolds family for $400,000. The Joneses then buy a newly constructed house from a builder for $500,000.

e. You purchase a used computer form a friend for $200.

f. Your university purchases a new mainframe computer from IBM, paying $25,000.

g. you win $100. in an Atlantic City casino.

h. You make $100 in the stock market.

i. You sell a used economics textbook to your college bookstore for $60.

j. You buy a new economics textbook from your college bookstore for $100

Explanation / Answer

yes: A, B, D, F, G, H, J

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