Do used car sales count in GDP? - FreeEconHelp.com, Learning Economics... Solved!

Do used car sales count in GDP?

Consider the following scenario:

You decide to purchase a used car (or a house, or anything used for that matter) from a used car dealer. The car's price is $2,500 (and for some reason you do not negotiate, always negotiate!). Out of that $2,500, $800 of it is considered profit for the dealer (meaning that he paid $1,700 for the car). How would this trade enter into Gross Domestic Product (GDP)?

Possible answers given include:

1) All of it: in this scenario the entire $2,500 would be included in GDP

2) The profit or "value added" (note that value added is in quotes because the actual value added is debatable): or the $800 because of an increase in consumption.

3) The value of the car - profit: or $1,700 (I can't think of a logical reason why this could be right)

-or-

4) None of it.

Remember that GDP is calculated using only FINAL goods. Intermediate goods and services are not include in the calculate, so we can immediately get rid of options 1 and 3. Right now it seems as though 4 is the best answer because we do not include used item sales in GDP measures. To count the sale of a used car would be a form of double counting since it was already counted in GDP when it was first produced, and this is wrong.

HOWEVER, the service provided by the used car salesman is something that did occur this year and needs to be included in the GDP measure. So the correct answer is actually 2, because certain actions by the car dealer such as cleaning, displaying, advertising, etc. are current and creating value because someone was willing to pay for it.

TLDR: Include the profit, but not used car value.

Example, car produced in 2012 sells for $14,000:
We include $14,000 in 2012 GDP
Car is then bought by a used car salesman for $7,000 in 2013, NO ENTRY for GDP in 2013
Car is then sold by this used car salesman for $8,000 in 2014, the difference (value added) of $1,000 would be added to GDP in 2014 as a service (consumption)


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  63. Do you want to buy or sell your kidney for money, Apollo Hospital is urgently in need for kidney donor at the rate of 1.70 CRORE, Payment procedure 50% (85 LAKHS) advance payment before operation, If any one is willing to sell please contact us through Email: kidneytransplant44@gmail.com

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  70. Hello

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  73. Do you want to sell your kidney for money? Are you seeking for an opportunity to sell your kidney for money due to financial break down and you don’t know what to do, then contact us today and we shall offer you good amount for your Kidney. WhatsApp +918867413844 or email pramodtransplant7@gmail.com

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  74. Dr Jack, Here is my testimony from a Heart Warming indebted Client (Joy Ofeimu from United states)

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  76. Do you want to sell your kidney for money? Are you seeking for an opportunity to sell your kidney for money due to financial break down and you don’t know what to do, then contact us today and we shall offer you good amount for your Kidney. WhatsApp +918867413844 or email pramodtransplant7@gmail.com

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  77. Sir, thank you so much for you genuine spell,my wife is back!!!

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  79. Dear Sir /Madam,
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  84. Good day everyone
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  89. Hello my name is Lauren i'm from USA i want to testify of a great and powerful spell caster my husband left me and the kids for 2 weeks when i called him he didn't pick up when he came back home the 3rd week he told me he wanted a divorce i was so sad i cried all night he left again i was so lonely the next day i was searching for something online when i found a spell caster called Priest Ade who have helped so many people with their problems so i contacted him with my problems he told me it will take 24hrs and my husband will be back to me i did every thing he told me to do and the next day my husband came back kneeling and begging he canceled the divorce we are now happy together Priest Ade can help you too Email him at

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  95. Greetings to my beloved viewers,i want to share with everyone today on how Dr.ZUKU great spell caster almighty creator brought my Ex Husband back,i was so traumatize staying all alone with no body to stay by me and to be with me,but i was so lucky one certain day to meet this powerful spell caster Dr.ZUKU After telling him about my situation he did everything humanly possible to see that my Husband come back to me,indeed after casting the spell my Husband came back to me less than 24 hours,and start begging me that he will never leave me again,it was like a dream to me,but he did came back to me and promised he won't leave me anymore,one thing you must know is that there are many women that will go to any length to break your relationship,i know that once you contact Dr.ZUKU today your home will be fully restored,Dr.Zuku on his email: drzukuspelltemple@gmail.com
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  99. Hi everyone, I will forever be greatful to Doctor Zakuza for fixing my broken marriage after my husband left me for his mistress for 6 months. I never believed in spells until my friend introduced me to him. At first, I was skeptical about him because I heard a lots about false spell casters but I put my doubts behind me for i was desperate to get my husband back and I did according to what he instructed me to do. Now my husband is back just within 48 hours of contacting him. I'm living happily with my husband again after 6 months of divorce and I will not rest till he's known all over the world. He's also specialized in money spells, lottery spells, pregnancy spells, sickness spells E.T.C. I will recommend anyone in need of help to reach him on his Email: doctorzakuzaspelltemple@yahoo.com & WhatsApp on +1 (845) 400-7115.

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  100. Save Your Relationship and Get Your Ex Boyfriend/Girlfriend Back!contact: Unityspelltemple@gmail.com is certainly the best spell caster online and his result is 100% guarantee.
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    My Name Glenda his form Tx,USA. After 12years of marriage, me and my husband has been into one quarrel or the other until he finally left me and moved to California to be with another woman. I felt my life was over and my kids thought they would never see their father again. i tried to be strong just for the kids but i could not control the pains that torments my heart, my heart was filled with sorrows and pains because i was really in love with my husband. Every day and night i think of him and always wish he would come back to me, I was really upset and i needed help, so i searched for help online and I came across a website that suggested that Dr oyinbo can help get ex back fast. So, I felt I should give him a try. I contacted him and he told me what to do and i did it then he did a (Love spell) for me. 28 hours later, my husband really called me and told me that he miss me and the kids so much, So Amazing!! So that was how he came back that same day,with lots of love and joy,and he apologized for his mistake,and for the pain he caused me and the kids. Then from that day,our Marriage was now stronger than how it were before, All thanks to Dr oyinbo. he is so powerful and i decided to share my story on the internet that Dr.oyinbo real and powerful spell caster who i will always pray to live long to help his children in the time of trouble, if you are here and you need your Ex back or your husband moved to another woman, do not cry anymore, contact this powerful spell caster now. Here’s his contact: Call/WhatsApp:+2348074066640 ,Email him at: prophetoyinbojesus@gmail.com


    ReplyDelete
  103. My name is Rebecca Zachary this was how a spell caster named Dr Adudu help me in winning $40 Million, I saw his clients sharing his testimony on a blog, On how he helped him win a mega million, so i whats-app him on +27710706895 , and I told him that I was having financial problems, that I will be needing to win , and that I needed a lottery spell, In order to win and pay of my bills and debts, after I told him all my problems, he asked me what kind of Lottery do they play over here in UK, I told him, POWER BALL , MEGA MILLION and so many others and he gave me some few steps to take, after some days, he gave me few numbers to play, to me the money was just too much, I said to myself it impossible for me to win this amount, but to my greatest surprise the next day I got there, they confirmed me winning the sum of $40 Million I was the most excited person alive that very day, now with the money I got my bills paid and my debt cleared also, all my thanks to Mr. Adudu the spell caster, Email him on (draduduspelltemple@gmail.com) or whats-app him on +27710706895 or also contact his Website:http://draduduspelltemple.wixsite.com/dradudu . He hates to be doubted so NEVER YOU DOUBT HIM.

    ReplyDelete
  104. DEAR SIR/MADAM
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    ReplyDelete



  105. I AM DR MICHEAL FROM CHARLES K1DNEY TRANSPLANT, WE BADLY ARE IN NEED OF K1DNEY D0N0R FOR THE SUM OF $600,000..WE ALSO NEED SPERM D0N0RS URGENTLY... CONTACT US NOW ON: WHATSAPP: +918494956293 OR EMAIL US: gabetovera963@gmail.com

    ReplyDelete
  106. Save Your Relationship and Get Your Ex Boyfriend/Girlfriend Back!contact: Unityspelltemple@gmail.com is certainly the best spell caster online and his result is 100% guarantee.
    My Name Olivia Stephen form Tx,USA. After 12years of marriage, me and my husband has been into one quarrel or the other until he finally left me and moved to California to be with another woman. I felt my life was over and my kids thought they would never see their father again. i tried to be strong just for the kids but i could not control the pains that torments my heart, my heart was filled with sorrows and pains because i was really in love with my husband. Every day and night i think of him and always wish he would come back to me, I was really upset and i needed help, so i searched for help online and I came across a website that suggested that Dr Unity can help get ex back fast. So, I felt I should give him a try. I contacted him and he told me what to do and i did it then he did a Love spell for me. 28 hours later, my husband really called me and told me that he miss me and the kids so much, So Amazing!! So that was how he came back that same day,with lots of love and joy,and he apologized for his mistake,and for the pain he caused me and the kids. Then from that day,our Marriage was now stronger than how it were before, All thanks to Dr Unity. he is so powerful and i decided to share my story on the internet that Dr.Unity real and powerful spell caster who i will always pray to live long to help his children in the time of trouble, if you are here and you need your Ex back or your husband moved to another woman, do not cry anymore, contact this powerful spell caster now. Here’s his contact
    Call/WhatsApp: +2348071622464 ,
    Email: Unityspelltemple@gmail.com ,
    Website:https://unityspelltemple126848969.wordpress.com .

    ReplyDelete
  107. OMG!! This is certainly a shocking and a genuine Testimony..I visited a forum here on the Internet on the 15th of April 2018 , And i saw a marvelous testimony of this powerful and great spell caster called Dr Oniha on the forum..I never believed it, because i never heard nor learn anything about spell nor magic before.. Not a soul would have been able to influence me about magical spells, not until Dr Oniha did it for me and restored my marriage of 8 years back to me and brought my spouse back to me just as i read on the Internet..i was truly astonished and shocked when my husband knelt down begging for forgiveness and for me to accept him back.. I am really short of expressions, and i don't know how much to convey my appreciation to you Dr Oniha you are a God sent to me and my entire family.. And now i am a joyful woman once again thanks for your good work and for restoring happiness to my home..
    HERE IS DR ONIHA WEBSITE: http://onihaspells.website2.me OR HIS EMAIL : onihaspelltemple@gmail.com. FOR ANY KINDS OF HELP. OR CALL +1 6692213962

    ReplyDelete
  108. GET YOUR EX BACK.

    This is Testimony from smith vivian, a woman from USA ... Read carefully. After being in relationship with him for nine years,he broke up with me, I did everything possible to bring him back but all was in vain, I wanted him back so much because of the love I have for him, I begged him with everything, I made promises but he refused. I explained my problem to someone online and she suggested that I should rather contact a spell caster that could help me cast a spell to bring him back but I am the type that never believed in spell, I had no choice than to try it, I mailed the spell caster, and he told me there was no problem that everything will be okay before three days, that my ex will return to me before three days, he cast the spell and surprisingly in the second day, it was around 4pm. My ex called me, I was so surprised, I answered the call and all he said was that he was so sorry for everything that happened, that he wanted me to return to him, that he loves me so much. I was so happy and went to him, that was how we started living together happily again. Since then, I have made promise that anybody I know that have a relationship problem, I would be of help to such person by referring him or her to the only real and powerful spell caster who helped me with my own problem and who is different from all the fake ones out there. Anybody could need the help of the spell caster, his email: drsakuraspellalter@gmail.com you can email him if you need his assistance in your relationship or anything. CAN NEVER STOP TALKING ABOUT YOU SIR HIS EMAIL ADDRESS IS:drsakuraspellalter@gmail.com //+2348110114739 CONTACT HIM NOW FOR SOLUTION TO ALL YOUR PROBLEM. or mail me for more information smithvivian558@gmail.com

    ReplyDelete
  109. Hello everyone,
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    Yahoo-mail:manipalhosital@yahoo.com

    ReplyDelete
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  111. I live in USA Florida and i am a happy woman today? I told my self that any Loan lender that could change my Life and that of my family, i will refer any person that is looking for loan to Them. If you are in need of loan and you are 100% sure to pay back the loan please contact them and please tell them that Mrs Sharon Coolidge referred you to them. barrymoreloans12@gmail.com or you can text +19725345446v

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  112. sell your k i d n e y for money, we are looking for k i d n e y d0n0rs with the sum of $500,000.00 USD,apply now via email: (pramodtransplant7@gmail.com)
    WhatsApp +918867413844

    ReplyDelete
  113. Do you want to sell your k i d n e y for money today?? we are looking for k i d n e y d0n0rs with the sum of $500,000.00 USD, Please apply urgently now via email: (pramodtransplant7@gmail.com) or
    WhatsApp +918867413844

    Thank you
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    +918867413844

    ReplyDelete
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  115. Hello
    Kidney donor's are needed A+, B+, O+, blood group donors between the age of 19 to 65.Whats-app Dr.Pramod +918867413844 or pramodtransplant7@gmail.com

    We will pay advance money to donor within 24hours.. kidney is needed very urgent.

    Thank you
    DR Pramod

    ReplyDelete
  116. my name is Angelica Modric!!! i am very grateful sharing this great testimonies with you, The best thing that has ever happened in my life is how i win the lottery. I am a woman who believe that one day i will win the lottery. finally my dreams came through when i email: isikolosolutionhome@gmail.com. trust and tell him i need the lottery numbers. i have come a long way spending money on ticket just to make sure i win. But i never know that winning was so easy until the day i meant the spell caster online which so many people has talked about that he is very great in casting lottery spell, so i decide to give it a try. I contacted this man and he did a spell and he gave me the winning lottery numbers. But believe me when the draws were out i was among winners. i win 1.200.000 million pounds. Great Dr Isikolo. trust truly you are the best, with these man you can will millions of money through lottery. i am so very happy to meet these man, i will forever be grateful to you. Email him for your own winning lottery numbers.
    Email: isikolosolutionhome@gmail.com or Whatsapp or Viber +2348133261196

    ReplyDelete
  117. This is my testimony about the good work of Dr Paul who help me.... I'm Katherine from usa. And am sorry for putting this on net but i will have to by this world top spell caster that brought back my husband which left me out for past 3 years, i eventually met this man on a blog site posting by one of is client for help, i explained everything to him and he told me about a spell caster that he had heard about and he gave me an email address to write to the spell caster to tell him my problems. In just 2 days, my husband was back to me. I just want to say thank you to this truthful and sincere spell caster, sir all you told have come to pass and thank you sir. Please i want to tell everyone who is looking for any solution to problem, i advice you to kindly consult this spell caster, he is real,he is powerful and whatever the spell caster tell is what will happen, because all what the spell caster told me came to pass. You can kindly contact him on: his email address is astoriashrine@gmail.com or directly on whasapp +2349051441669

    ReplyDelete
  118. My husband is my hero, he saved our marriage and my heart from an unhealthy emotional attachment with my ex.
    The problem was that I jumped into marriage from a fresh breakup, I never allowed my heart to heal, that’s why I was heavily hunted and distracted to a point that I almost abandoned my husband and our 2 beautiful daughters to my ex. Look how stupid I was to think that my beloved husband of 5 years can be replaced by a bad ass ex-boyfriend.
    My husband proved that real men still exist despite all the embarrassment I brought to him, he didn’t let go, he rather worked with Dr. Wakina through his love spell to untie me from the unhealthy emotional attachment with my ex.
    Now my eyes are open to cherish the beautiful family I have, I also realised the meaning of true love. I’m hoping to do more than what Dr. Wakina via dr.wakinalovetemple@gmail.com did for me.
    Thanks to my husband for letting me share this story.
    Remain blessed.

    ReplyDelete