If a used car dealer purchases a used car for $3,000, makes repairs and refurbishes it, then sells it for $8,000, the
a. dealer contributes value added equal to $5,000, but nothing is added to GDP.
b. dealer contributes value added equal to $5,000, and consequently $5,000 is added to GDP.
c. dealer contributes nothing to production because only existing goods are involved.
d. dealer contributes value added equal to $8,000, but only $5,000 is added to GDP.
B
Economics
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