Why is the sale of a used good not counted in GDP?
Answer and explanation
Correct answer: Because it is not new current-year production
GDP measures the market value of final goods and services produced within a country during the current accounting period. A used good was produced and normally counted in an earlier period, so counting its resale again would duplicate output. Option D is correct. A used good may be useful and have a price, but those facts do not make it current production.
Frequently asked questions
What is the correct answer to this question?
Because it is not new current-year production
Why is this the correct answer?
GDP measures the market value of final goods and services produced within a country during the current accounting period. A used good was produced and normally counted in an earlier period, so counting its resale again would duplicate output. Option D is correct. A used good may be useful and have a price, but those facts do not make it current production.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
