How does that transaction influence GDP

Assignment Help Business Economics

Reference no: EM131173826

You just bought a 10-year-old house. The house is located in a expensive neighborhood. You do have to do some repairs. How does that transaction influence GDP? If the house is purchased with the assistance of a real estate agent, is this payment included in GDP? You then hired a local contractor to re-do the wiring. You paid the contractor $10,000. . The contractor had to buy new wire. How does the purchase of wire by the contractor influence GDP? What if you had done the wiring yourself? In this case, you bought $2,000 in wire to complete the task. How would this influence GDP? Why do the two methods of wiring the house have different implications for calculating GDP when the actual production (a house rewired) is the same?

Reference no: EM131173826

Questions Cloud

Market generate benefits that are realized outside of market : Some goods that are bought and sold markets generate benefits that are realized outside of the market. A policy that will make these markets more efficient is...

Discuss how the biblical stewardship : Discuss how the Biblical STEWARDSHIP principle (God is owner of all.) impacts business decisions and puts additional constraints on business behavior for the Christian. Because all property is ultimately God’s and profits are due to God’s grace, shou..

Costs of building capacity are mostly fixed : For products like parking lots and hotels, costs of building capacity are mostly fixed or sunk and firms in this industry typically face capacity constraints.

Public and private security concerns often differ : When it comes to CIKR protection, public and private security concerns often differ. Do you agree or disagree with this statement? What are the differences?

How does that transaction influence GDP : You just bought a 10-year-old house. The house is located in a expensive neighborhood. You do have to do some repairs. How does that transaction influence GDP? If the house is purchased with the assistance of a real estate agent, is this payment incl..

What output will the monopolist produce : What is the short-run condition for the monopolist. In the following table are demand and cost data for a pure monopolist. What output will the monopolist produce? What total profit ill the monopolist receive at the profit-maximizing level of output?

What is the short-run condition for the monopolist : A pure monopolist sells output for $4.00 per unit at the current level of production. At this level of output, the marginal cost is $3.00, average variable costs are $3.75, and average total costs are $4.25. The marginal revenue is $3.00. What is the..

Consider the heckscher-ohlin model : Consider the following Heckscher-Ohlin model: there are two countries, America and China, two goods, high-tech manufactures and low-tech manufactures, and two factors of production, skilled labor and unskilled labor. America is skilled-labor abundant..

What is the opportunity cost of beef in each country : Does either country have an absolute advantage in the production of wheat or beef? Explain. What is the opportunity cost of wheat in each country? What is the opportunity cost of beef in each country?

User Account

All Pages