Register
Bob bought $5000 worth of Adobe Systems stock. This transaction was brokered by John, who received $50 for his help. I think the $5000 should be included in GDP, and the $50 should not be included in GDP.
198k views
2 votes
Bob bought $5000 worth of Adobe Systems stock. This transaction was brokered by John, who received $50 for his help. I think the $5000 should be included in GDP, and the $50 should not be included in GDP. State whether I am right or wrong with an explanation for your answer.

User PSK
by
3.1k points

1 Answer

4 votes

Answer:

You are wrong

Step-by-step explanation:

This is because buying of stock from adobe system does not contribute anything new to the economy and as such does not have an impact on GDP.

What happened was just transfer of partial ownership from Adobe to Bob, so it will not be included in GDP. The help rendered by John was a service, which add to the total output of the economy. Therefore, $50 will be added to the GDP.

User Fredkr
by
3.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.5m questions

4.4m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
Andrew doesn’t want to spend a lot of money on student loans, and does not qualify for grants. what is his best option for affording a bachelors degree
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
Link Copied!