Which of the following transactions is included in Gross Domestic Product?
A) A Social Security check received by a retired couple
B) A gift card that a mother gives her son
C) A used textbook that one student gives another student in exchange for an iPod
D) Tips received by a waitress who reports them to the IRS

Question

Quizplus · Accepted Answer

Tips reported to the IRS are considered part of taxable income and are included in GDP. The other options do not involve a transaction that contributes to GDP. A Social Security check represents a transfer payment, not the production of goods and services. A gift card is a transfer of purchasing power, but it does not represent actual economic activity. A used textbook in exchange for an iPod is a barter transaction that does not involve the production of new goods or services.

Which of the Following Transactions Is Included in Gross Domestic