ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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All of the following are excluded from GDP except
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non-market goods and services
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used goods
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environmental quality
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final goods and services
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Explanation:
Detailed explanation-1: -Intermediate goods, which are goods that are used in the production of other goods, are excluded from GDP calculations.
Detailed explanation-2: -All final goods and services that are sold for the first time are included in the GDP. To avoid double measurement errors, second-hand goods are not included in the GDP unless they are improved.
Detailed explanation-3: -In a free market economy, GDP includes only those products that are sold through the market. That is, consumers are willing to pay prices for the products they consume. In principle, GDP does NOT include those products consumers do not pay for. Exception: Imputed rent is included.
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