Which one should be counted toward U.S. GDP?

A. When a wholesale distributor sells steak to a restaurant, the restaurant owner pays $400 to the distributor.
B. An American purchases domestic stocks at NYSE.
C. A stockbroker helps an investor buy a portfolio of stocks for $100,000, receiving $800 as commission.

Correct Answer: C

A: The steak is still an intermediate good. Only the final purchase price paid by the patron of the restaurant for the steak dinner should be counted.

B: Financial transactions are excluded from GDP since they don't involve production. They merely transfer ownership from one party to another.

C: The commission is included since it involves a service.