Which example would affect GDP,as measured by Statistics Canada?
A) A computer manufacturer sells computers to a bank.
B) Nick receives $45,000 from his company in compensation for losing his job.
C) You purchase the condo that you used to rent.
D) The local water company takes 20,000 litres of water from a nearby river.

Question

Quizplus · Accepted Answer

The sale of goods and services (in this case, computers) is a component of GDP.

Answer: B
 Compensation for losing a job is considered a transfer payment and not a part of GDP.

Answer: C
 The purchase of an existing property is not included in GDP as it represents a transfer of assets, not an economic activity.

Answer: D
 The use of natural resources, such as water, is not included in GDP as it is not an economic transaction.

Which Example Would Affect GDP,as Measured by Statistics Canada