or each of the following transactions, determine the contribution to the current year's GDP. xplain the effects on the product, income and expenditure accounts. 1. On Jan 1, you purchase 10 notebooks at a price of $5 each. The seller produced the notebooks the previous year, and held them as inventories. 2. Someone purchases a 1921 Westmount mansion for $5,000,000. The broker's fee is 4%. 3. A new mother enters the workforce, taking a job as a baker that will pay $30,000 over the year. The mother must pay $4,000 a year for professional child-care services. 4. A car rental agency updates it fleet: it buys $100,000,000 worth of new cars from a domestic producer. It sells its old fleet to a used car dealer for $40,000,000. The dealer
or each of the following transactions, determine the contribution to the current year's GDP. xplain the effects on the product, income and expenditure accounts. 1. On Jan 1, you purchase 10 notebooks at a price of $5 each. The seller produced the notebooks the previous year, and held them as inventories. 2. Someone purchases a 1921 Westmount mansion for $5,000,000. The broker's fee is 4%. 3. A new mother enters the workforce, taking a job as a baker that will pay $30,000 over the year. The mother must pay $4,000 a year for professional child-care services. 4. A car rental agency updates it fleet: it buys $100,000,000 worth of new cars from a domestic producer. It sells its old fleet to a used car dealer for $40,000,000. The dealer
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:For each of the following transactions, determine the contribution to the current year's GDP.
Explain the effects on the product, income and expenditure accounts.
1. On Jan 1, you purchase 10 notebooks at a price of $5 each. The seller produced the
notebooks the previous year, and held them as inventories.
2. Someone purchases a 1921 Westmount mansion for $5,000,000. The broker's fee is 4%.
3. A new mother enters the workforce, taking a job as a baker that will pay $30,000 over
the year. The mother must pay $4,000 a year for professional child-care services.
4. A car rental agency updates it fleet: it buys $100,000,000 worth of new cars from a
domestic producer. It sells its old fleet to a used car dealer for $40,000,000. The dealer
resells the cars to the public for $60,000,000.
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