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Author Question: The amount of new stocks and bonds issued in a year adds to the country's GDP. Is this assertion ... (Read 28 times)

APUS57

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on: Jun 29, 2018
The amount of new stocks and bonds issued in a year adds to the country's GDP. Is this assertion correct or incorrect? Explain your answer.
 
  What will be an ideal response?

Question 2

Does the proprietor of a grocery store who owns the building in which his business is located have lower costs than a grocery store proprietor who must pay rent for the building in which his store is located?
 
  A) No, because no two businesses will be exactly the same.
  B) No, because the owner-proprietor loses the rent he could otherwise have been paid.
  C) Yes, because he can afford to set lower percentage markups.
  D) Yes, if the cost saving is not offset by higher expenses in other areas.


JCABRERA33

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Reply #1 on: Jun 29, 2018
Answer to Question 1

The assertion is incorrect. Stocks and bonds are not counted in the country's GDP. GDP measures the production of final goods and services. Issuing new stocks or bonds does not produce a final good or service and so stocks and bonds are not included in GDP.

Answer to Question 2

B


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