Question

In which components of GDP would each of the following items be found? Items (12 items) (Drag and drop into the appropriate area below) No more items Categories Consumption the purchase of a used couch on Craigslist gambling services provided to tourists by Las Vegas casinos commission paid to E-Trade because they facilitated a stock trade the sale of bolts to Ford to be used on the tires of the vehicles they sell the sale of a song written by a Californian to a customer in Kansas Investment an increase in Apple's inventories of iPads a new tractor purchased by a farmer Government

Answer 1

Answer:

Given items categorised in 'Consumption / Investment / Government Expenditure / Net Export' components of GDP

Explanation:  

Purchase of used couch on Las Vegas casinos : Not included in GDP, as trade of second hand goods & windfall gains are not included in GDP.  

Commission paid to E-Trade because they facilitated a stock trade : Included in 'Consumption', as it commission is a factor payment done for a productive service

T he sale of bolts to Ford to be used on the tires of the vehicles : Not included, as GDP includes only final goods & this is an intermediate good used in production process

The sale of a song written by a Californian to a customer in Kansas : Sale of creative work content within the economy. So, it is included in Consumption

Increase in Apple's inventories of iPads : Inventories are a part of capital stock, so increase in capital stock is included in Investment

Purchase of a new tractor by a farmer : Farmer has added is capital stock, by adding an asset. It comes in Investment.