Which of the following transactions would not be counted in GDP? Explain your
answers.
(5)
i) General Motors issues new shares of stock to finance the construction of a plant.
ii) Tata Motors builds a new plant.
iii) Company A successfully launches a hostile takeover of company B, in which company A
purchases all the assets of company B.
iv) Your grandmother wins Rs.10 million in the lottery.
v) You buy a new copy of a Commerce textbook.
vi) You buy a used copy of the above Commerce textbook.
vii) The government pays out Social Security benefits.
viii) A public utility installs new antipollution equipment in its smokestacks.
ix) Domino’s Pizza buys 30 pounds of mozzarella cheese, holds it in inventory for 1 month,
and then uses it to make pizza (which it sells).
x) A drug dealer sells Rs500 million worth of illegal drugs.