Question

The market value of which of the items would be considered double (or multiple) counting in the calculation of GDP?

A. a used skateboard you buy for your brother

B. the commission paid to the seller of a previously owned collectors skateboard

C. a new building for tony hawk industries

D. used copy of the tony hawk video game

E. previously owned collectors skateboard

F. ticket for the X games bought from a person on a street corner

G. new skateboard you buy for your niece

H. Wheels used to produce a skateboard that will be sold new

Answer 1

The correct answer is H and F

Step-by-step explanation:

Double counting in GDP leads to excessive problems of overestimated country's GDP. So, it is important to understand which factor should be included in GDP and which must not. GDP is the value of finished goods and services produced within a country.

A skateboard is already included in the GDP; so the production of new wheels in the GDP can lead to double counting. Similarly, a ticket is already included in the GDP; if a person sells a movie ticket on the streets should be included in the GDP calculation.