Suppose that a dealership added domestically-produced cars to its inventory in June 2014 because it expected an increase in demand for them. The dealership miscalculated the preferences of its customers, however, and was not able to sell the cars until January 2015. The cars added to the dealership's inventory in June 2014 Group of answer choices

A. to avoid double counting they will not appear neither in 2014 GDP, nor in 2015 GDP.

B. will not show up in 2014 GDP and will be counted when they are actually sold 2015.

C. will be counted in 2014 GDP as part of consumption

D. will not be counted in 2014 GDP because they were intermediate goods that year.

E. will counted 2014 GD fin 20.

Question

Hector

Business

21 February, 05:41

Suppose that a dealership added domestically-produced cars to its inventory in June 2014 because it expected an increase in demand for them. The dealership miscalculated the preferences of its customers, however, and was not able to sell the cars until January 2015. The cars added to the dealership's inventory in June 2014 Group of answer choices

A. to avoid double counting they will not appear neither in 2014 GDP, nor in 2015 GDP.

B. will not show up in 2014 GDP and will be counted when they are actually sold 2015.

C. will be counted in 2014 GDP as part of consumption

D. will not be counted in 2014 GDP because they were intermediate goods that year.

E. will counted 2014 GD fin 20.

+5

Answers (2)

Know the Answer?

Joselyn · Answer 1

E. will be counted in 2014 GDP as part of investment

Explanation:

Considering that the car was domestically produced in 2014 but was unable to sell till january 2015. The car will be counted as part of the investment of 2014.

Investment can be defined as the purchase of goods which are not consumed today but used at a later date in the future to create wealth. it can also be a monetary asset purchased with the idea that the asset will provide income in the future or at a later time. The term "investment" can refer to any mechanism that is used for generating future income to be sold at a higher price for a profit.

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. So, the car been produced in 2014 makes it part of the investment of 2014.

Hana Benton · Answer 2

The correct option is C

Explanation:

Since car is produced in 2014 and purchased in 2014 for sale, it will go to the investment component of the GDP in 2014.

GDP is the monetary value of all finished goods and services made within a country during a specified period. So since it was produced in 2014 it will go in the GDP of 2014.