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Why may a broker's service be included even though the sale of a used car is generally excluded from GDP?

Answer and explanation

Correct answer: Because the broker's service is produced in the current year

GDP records current production during a particular period. A used car was normally counted when it was first produced, so its resale does not represent new production and is excluded to avoid double counting. However, brokerage, advertising or transfer services supplied in the current year are newly produced services and their fees can be included in GDP. Therefore, option B is correct.

Related tags

Used GoodsCurrent ProductionBroker ServiceGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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