U. S. car dealers sell both used and new cars each year. However, only the sales of the new cars count toward GDP. The sale of used cars does not count because:

a. the car had been previously counted in the GDP of the year it was built.

b. there are more used cars than new cars.

c. the value of the used car depends on the value of the new car.

d. the value of used cars cannot be determined.

Question

Business

Ruiz

20 November, 20:56

U. S. car dealers sell both used and new cars each year. However, only the sales of the new cars count toward GDP. The sale of used cars does not count because:

a. the car had been previously counted in the GDP of the year it was built.

b. there are more used cars than new cars.

c. the value of the used car depends on the value of the new car.

d. the value of used cars cannot be determined.

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Answers (1)

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Viviana Lyons · Answer 1

Answer: a. the car had been previously counted in the GDP of the year it was built.

Explanation: Though both used and new cars are sold in the U. S. by car dealers, the sale of used cars does not count because the car had been previously counted in the GDP of the year it was built. The Gross Domestic Product (GDP) which is defined as a measure of the economic production of a country in financial terms over a specific time period (usually a year), sums the dollar value of what has been produced in the economy over the year, not what was actually sold. In simpler terms, they were produced in a previous year and are part of that year's GDP.