The sale in year 2 of an automobile produced in year 1 would

The sale in year 2 of an automobile produced in year 1 would not be included in the gross domestic product for year 2, doing so would involve O A including a nonmarket transaction B including a nonproduction transaction O C including a noninvestment transaction O D public transfer payments

Solution

Answer - including a non production transaction.

Reason - GDP or Gross domestic product is the monetary measure of all goods and services produced in an economy in a period of time. Thus GDP include Only newly produced goods, including those that increase inventory are counted in GDP. Sales of used goods and sales from inventories of goods that were produced in previous years are excluded. Nonproduction transactions must be excluded from GDP because they have nothing to do with the generation of final goods in current year. Thus if a good is produced in year 1 it will be counted as a part of GDP of year 1 and not year 2, and doing so will include a non production transaction in GDP.

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