Question

Consider two cars manufactured by Chevrolet in 2014. During 2014, Chevrolet sells one of the two cars to Emily for $20,000. Later in the same year, Emily sells the car to Jim for $18,000. The second automobile, with a market value of $19,000, is unsold at the end of 2014 and it remains in Chevrolet’s inventory. The transactions just described contribute how much to GDP for 2014?

a. $20,000
b. $37,000
c. $38,000
d. $39,000

Answer 1

correct option are d. $39,000

Explanation:

given data

Chevrolet sells cars to Emily = $20,000

Emily sells the car to Jim = $18,000

second car market value unsold = $19,000

to find out

The transactions just described contribute how much to GDP for 2014

solution

we know here Chevrolet have 2 car

1 car unsold but other car is sold 2 time 1st by Chevrolet sells to Emily then Emily sell to Jim

so here transactions are done = ($2000 + $19000) = $39000

other car is not sell so not transactions by that car

so correct option are d. $39,000