second-hand goods

If a consumer sells the goods that they have purchased as second-hand goods this isn't considered to be economic activity even though money changes hands, because the seller doesn't intend to make a profit, and intends only to recoup some of the original purchase price for the remaining value of the goods. For the activity to be economic there must be an intention to make a profit out of the activity. However, when a second-hand dealer buys and sells goods they do intend to make a profit, so their transactions are economic activity.

 

This page is linked from:

how resources are used in economic activities  

consumption

 

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