Homework Sourse1 Jenny owns two commercial buildings She rents one to a fel
1. Jenny owns two commercial buildings. She rents one to a fellow businesswoman for $15,000 per year. she retains ownership of the other guiding. Her son informed her she could rent It out for $24,000 per year.
How much do the commercial building services provided by the two buildings contribute to the GDP?
2. Social scrcurit checks, economics defines this as what type of payment?
1. Jenny owns two commercial buildings. She rents one to a fellow businesswoman for $15,000 per year. she retains ownership of the other guiding. Her son informed her she could rent It out for $24,000 per year.
How much do the commercial building services provided by the two buildings contribute to the GDP?
2. Social scrcurit checks, economics defines this as what type of payment?
1. Jenny owns two commercial buildings. She rents one to a fellow businesswoman for $15,000 per year. she retains ownership of the other guiding. Her son informed her she could rent It out for $24,000 per year.
How much do the commercial building services provided by the two buildings contribute to the GDP?
2. Social scrcurit checks, economics defines this as what type of payment?
How much do the commercial building services provided by the two buildings contribute to the GDP?
2. Social scrcurit checks, economics defines this as what type of payment?
Solution
(1) Jenny retains ownership of the second building and imputed value of its rental income is $24,000. Since imputed value is excluded from GDP, the only contribution to GDP comes from rental income out of the first building, which is $15,000 per year.
(2) Social security checks are issued by government in return of which no good or service is received. Being a unilateral payment, this is known as Transfer Payment.
