The market value of which of the items would be considered double (or multiple)
ID: 1138963 • Letter: T
Question
The market value of which of the items would be considered double (or multiple) counting in the calculation of GDP? Please place items into the appropriate category Not included in GDP Included in GDP because of double counting Answer Bank the commission paid to the seller of a previously owned collectors skateboard wheels used to produce a skateboard that will be sold new a used skateboard you buy for your brother a new building for Tony Hawk Industriesa ticket for the X Games boughta used copy of the Tony Hawk video game from a person on a street corner a new skateboard you buy for your niece a previously owned collectors skateboardExplanation / Answer
The GDP can be defined the market value of all goods and services which are produced in the domestic territory of the country in the current financial years.
The goods or services which are sold new will be included in the GDP of the current year.
The goods which is old or used, will not be included in the current GDP because it had already included in the past year GDP.
The goods and services which will not be included in the GDP due to double counting are;
a used skateboard you buy for your brother.
A ticket bought for the X games bought from a person in a street corner. This will not be included in the GDP because it is already included in the GDP when the person purchased it from the ticket counter.
a used copy of the Tony Hawk video game.
a previously owned collectors skateboard.
The goods and services which will be included in the GDP are:
the commission paid the the sellers of the previously owned collectors of skateboards. This will be include because commission is a services which is performed in the current financial years.
Wheels used to produce a skateboard that will be sold new.
A new building for Tony Hawk industries.
a new skateboard you buy for your niece.
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