Author Question: If the purchase of used goods was to be incorporated into measuring GDP using the expenditure ... (Read 62 times)

nautica902 · **on:** Jun 30, 2018

If the purchase of used goods was to be incorporated into measuring GDP using the expenditure approach, then

A) consumption spending would need to be adjusted for depreciation.
B) it will be very difficult to assign a fair market value to a used good.
C) we will have to account for the natural depreciation that a used good experiences.
D) we also will have to account for spending on financial assets.
E) we will be counting the value of the used goods both at the time of their production and at the time of their re-sale.

Question 2

Recall the Application. If the decrease in price of illegal drugs is primarily due to a change in supply, the equilibrium quantity of drugs

A) will increase. B) will decrease.
C) will not change. D) may or may not change.