Author Question: A car that is produced in 2016 is not sold until 2017. According to the definition of GDP, in which ... (Read 124 times)

newyorker26 · **on:** Jun 29, 2018

A car that is produced in 2016 is not sold until 2017. According to the definition of GDP, in which year's GDP should it be counted?

A) Half of the sales price will count as part of 2016 GDP and half will count as part of 2017 GDP.
B) The production cost will count as part of 2016 GDP while the sales price will count as part of 2017 GDP.
C) 2017
D) 2016

Question 2

In an effort to clean up the amount of sulfates introduced into the atmosphere the government has ruled that all polluters install smoke stack scrubbers on their smoke stacks and mandated a pollution limit on the amount of sulfates per parts of air

that may be legally emitted into the atmosphere. Suppose some of the polluters have found a more efficient way to eliminate the pollution. How will this discovery change the amount of sulfates emitted into the atmosphere?

millet · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

The answer is that it will not change the amount of sulfates emitted. Since the firm is not legally allowed to adopt this technology it will continue to use the government-mandated technology of smoke stack scrubbers.