Question

Suppose a TV was manufactured 5 years ago in 2013, and it had a market value of 50,000. However, demand for TVs was very low and so it was left unsold.

Now, in 2018, it is sold for a market price of 80,000. What amount is added to the GDP of the economy in 2018 with respect to this single TV?

• A. 30,000
• B. 50,000
• C. 80,000
• D. 1,30,000

Answer 1

The correct option is A

30,000

The market price of the TV in 2013 was added to that year's GDP. So, there is a difference of 30,000 between the old price and the current year's price. So this value of 30,000 is added to 2018's GDP.