ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes
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No
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Either A or B
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None of the above
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Detailed explanation-1: -Which products are excluded? 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.
Detailed explanation-2: -The GDP includes only the finished goods and services and does not include the intermediate goods produced.
Detailed explanation-3: -GDP is composed of goods and services produced for sale in the market and also includes some nonmarket production, such as defense or education services provided by the government. An alternative concept, gross national product, or GNP, counts all the output of the residents of a country.
Detailed explanation-4: -Share: Housing’s combined contribution to GDP generally averages 15-18%, and occurs in two basic ways: Residential investment (averaging roughly 3-5% of GDP), which includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes, and brokers’ fees.