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If an old house is sold and an agent receives commission what will be included in current GDP?

Answer and explanation

Correct answer: Only the commission for the agent's current service

GDP measures current production during the accounting period. The old house was produced in an earlier period, so its resale value is not counted again; otherwise the same structure would be double-counted. However, the estate agent provides a new brokerage service in the current period, and that commission is current production and is included. Thus A is correct, while B and C incorrectly count the old asset and D omits the service.

Related tags

Used HouseAgent CommissionCurrent GdpGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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