QUESTION 50 The purchaso of the fnancial assets such as stocks and bonds ecause

Question

QUESTION 50 The purchaso of the fnancial assets such as stocks and bonds ecause e brokerage fims don't want them to be included o they don't represent the production of goods or services e taxes are paid on them O The question errs because the purchase of financial assets is counted as part of GDP QUESTION 51 The purchase of stocks and bonds is ncluded in GDP as a consumption expenditure not included in GDP because these are intermediate goods not included in GDP as investment included in GDP as investment ) included in GDP as an intermediate good

Explanation / Answer

Question 50 Correct choice is they do not represent the production of goods and services

This is because bonds, stocks are mere paper transfers and there is no actual production of goods and services to be taken place in the given year. These bonds, or stocks experience a change in the name of the owner and nothing else.

Question 51 Correct option is not included in GDP as investment

As mentioned, these are are mere paper transfers and there is no actual production of goods and services to be taken place in the given year. These are not intermediate goods because these are not used in production of other goods and services.

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