Which of the following would be included in the calculation of GDP?

Question

A) expenditure on new construction

B) cost of hiring labor at a fast-food restaurant

C) buying an existing house

D) buying shares of Home Depot stock

2. Workers today are more productive than workers in the past because:

A) workers now are physically stronger on average.

B) workers now have more physical capital embodying better

technology to work with.

C) there are more workers now working with the same number

of machines than in the past.

D) of all of the above.

3. Investment spending refers to:

A) buying stocks.

B) buying newly issued shares of stock.

C) adding to physical capital.

D) adding to one's retirement account.

Answer 1

1:

A) expenditure on new construction - it will be "Investment" component for calculating GDP by expenditure method.

B) cost of hiring labor at a fast-food restaurant it will be "Wages" component for calculating GDP by income method.

"C" and "D" are not included because change of property rights does not add to GDP.

But for your case stick on "A"

2:

D) of all of the above.

3:

C) adding to physical capital.