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: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
Detailed explanation-2: -The official measure of GDP does not include measurements of leisure time available, nonmarket production, production in the underground economy, the distribution of income, or production externalities (e.g., pollution).
Detailed explanation-3: -The major items included in the calculation of GDP include business investment, net exports, individual consumptions, and government expenditures. The GDP calculation does not transfer payments, purchases, and sales of used goods, intermediate goods, etc.
Detailed explanation-4: -What is not included is Sales of goods that were produced outside our domestic borders, Sales of used goods, Illegal sales of goods and services (which we call the black market), Transfer payments made by the government. Only goods and services produced domestically are included within the GDP.