ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Lauren coaches softball and gets paid in cash each week. Is this included in GDP?
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Yes-Consumer Spending
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Yes-Investment
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No-Underground Economy
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No-Purely financial transaction
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Explanation:
Detailed explanation-1: -Not all productive activity is included in GDP. For example, unpaid work (such as that performed in the home or by volunteers) and black-market activities are not included because they are difficult to measure and value accurately.
Detailed explanation-2: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
Detailed explanation-3: -Intermediate goods that have been turned into final goods and services (e.g. tires on a new truck) Used goods. Transfer payments. Non-market activities. Illegal goods.
There is 1 question to complete.