Georgia DECA Advertising Practice Test

Which of the following would be included in Gross Domestic Product (GDP)?

1. A stock traded on the stock market

2. A tractor purchased by a farmer

3. A second-hand car sale

4. A service provided by a consultant

The correct answer is: A tractor purchased by a farmer

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country in a given period. To be included in GDP, the transaction must involve newly produced goods or services rather than transactions involving used goods or financial assets. Purchasing a tractor by a farmer is included in GDP because it represents a purchase of a new good that is being used in the production of other goods (like food or materials). This purchase reflects an investment in capital that contributes directly to the agricultural production capacity of the economy. In contrast, options such as a stock traded on the stock market represent financial transactions rather than the production of goods and services. Similarly, a second-hand car sale does not contribute to GDP since it does not reflect new production; it merely transfers ownership of an existing asset. Lastly, while a service provided by a consultant involves a transaction for a service, the phrasing of the question suggests focus on tangible goods, which makes the tractor purchase the most clear-cut example of GDP inclusion from the choices given.