Sophia just bought shares of stock in IBM for $20,000 and paid a $300 commission to her broker.How did this impact GDP?
A) It had no impact on GDP.
B) GDP increased by $300.
C) GDP increased by $20,000.
D) GDP increased by $19,700.
E) GDP increased by $20,300.

Question

Quizplus · Accepted Answer

The $300 commission paid to the broker is a service and is included in GDP as it reflects the value of services provided. The purchase of stocks itself does not impact GDP as it is a financial transaction and not a production of goods or services.

Sophia Just Bought Shares of Stock in IBM for $20,000