What does the exclusion of resale of a used good imply for welfare analysis?

Correct answer: A change of ownership may create utility, but GDP does not rise because there is no current production

GDP records the value of goods and services produced during the current period, so the original sale of a good is counted when it is newly produced. A later resale usually transfers ownership rather than creating another newly produced good. The buyer may still receive satisfaction or utility from using it, but that welfare is not recorded as additional current GDP. Thus option C correctly separates utility from measured production.