Indicate whether each of the following is counted in the Uni

Indicate whether each of the following is counted in the United States gross domestic product for the year 2006. Explain each of your answers. The value of a used textbook sold through an online auction in 2006 Rent paid in 2006 by residents in an apartment building built in 2000 Commissions earned in 2006 by a stockbroker The value of automobiles produced in 2006 entirely in South Korea by a firm fully owned by United States citizens

Solution

(a) Used goods and services are not included in computing GDP, since GDP measures the final value of goods & services produced only once in their lifetime.

(b) Rent paid is a factor income, which is considered in GDP when using the Income approach.

(c) Stockbroker commissions are included in GDP since they\'re legitimate earnings earned by providing services.

(d) This is not counted in GDP since production is not done with US.