Question

The sale of ______.

A) the GNP does not include sale of used items priced below $1000.
B) both a used textbook and a used house do not enter GNP.
C) a used textbook does enter GNP.
D) a used textbook does not enter GNP,
E) a used textbook does not enter GNP, but the sale of a used house does.

Answer 1

The sale of both a used textbook and a used house do not enter GNP.

Explanation:

• Once a product or a commodity is sold, it is automatically recorded in the transactions and is counted in the sum of the final prices of all the products and services produced within an economy in a given period of time.
• Hence, when it is sold for the second time, it is preferable not to count the same product or service so as to avoid the false bulking up of the GNP.