Which of the following is a good or service counted in GDP?
A) tires Ford buys to put on a car
B) a used tire you buy for your personal car
C) a new tire you buy for your personal car
D) used tires bought by a used car dealer to put on a car on his lot

Question

Quizplus · Accepted Answer

A new tire purchased for personal use is counted in GDP because it is a final good that has not been previously sold, reflecting current economic activity. Choices A and D involve intermediate goods not counted in GDP, and B involves a used good, which does not contribute to current GDP as it was counted in the period it was first sold as new.

Which of the Following Is a Good or Service Counted