Question

Which of the following expenditures would not be included in GDP?

A) Purchase of a ticket to the latest movie.
B) Purchase of a silver cup previously sold new in 1950.
C) Purchase of a new lawnmower.
D) All of these would be counted in GDP.

Answer 1

Answer: Option B

Explanation: In simple words, GDP refers to the market value or the price of goods and services that are produced in an economy within a year. It constituents are consumption, investment , government expenditure and net exports.

The purchase of ticket and new lawnmower is a consumption while the silver cup belongs to some previous year.

Hence the correct option is B .