Joe and Pam are neighbors. Joe asks Pam to drive him to the airport. Before leaving, Joe pays for Pam to fill her car's gas tank at the local gas station. Joe's trip to the airport would be ________.
A. not counted in GDP because the trip does not involve any formal market transactions
B. counted in GDP because Joe purchased the gas
C. not counted because nothing was actually produced
D. counted in GDP because Joe and Pam represent different households
Answer: B
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The short-run individual supply curve of the perfectly competitive firm is:
a. the upward-sloping portion of its average variable cost curve. b. its average total cost curve. c. its marginal cost curve above average variable cost. d. its marginal cost curve above average total cost.
In 2010 and 2011, many observers were worried that the
A. budget would not be balanced and fiscal stimulus would be withdrawn too soon. B. budget would not be balanced and monetary stimulus would be withdrawn too soon. C. budget would be balanced and fiscal stimulus would be withdrawn too soon. D. budget would be balanced and monetary stimulus would be withdrawn too soon.