The Liebowitz family purchased a used two-year-old sofa at Swanson's Used Furniture Store in March of 2011.How will this affect the 2011 GDP?
A)Only the sale value of the used sofa will be included in the 2011 GDP.
B)Only the commission received by the salesman will be included in the 2011 GDP.
C)The sale will have no effect on the 2011 GDP.
D)Both the sale value of the sofa and the commission will be included in the 2011 GDP.

Question

Quizplus · Accepted Answer

The sale of used goods does not contribute to GDP, but the commission earned by the salesman is considered a service and is included in GDP.

The Liebowitz Family Purchased a Used Two-Year-Old Sofa at Swanson's