Question:

The following activity is not counter in GDP?

by  |  earlier

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A: the production of 'waste' products

B: the purchase of a 18th century painting

C:the production of a car that remains unsold;

d:the hiring of a ladder to carry out repair work on a house

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2 ANSWERS


  1. The answer prior to this one is incorrect.

    B is the correct answer GDP is the measure of production in a country. The 18th century painting was produced in the 18th century and so would not be counted in GDP.

    C which was erroneously submitted as an answer by the previous poster is a part of GDP because it was produced in the country during the specified time period. The fact that it was not sold means that it is part of the firms investment. It is an investment in inventory. The company now has lets say, $20,000 extra that it didn't have before by having the car in its warehouse.


  2. I'm guessing C.

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