ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following expenditures would not be included in GDP?
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Purchase of a new lawnmower.
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Purchase of a silver cup previously sold new in 1950.
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Purchase of a ticket to the latest movie.
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All of these would be counted in GDP.
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Explanation:
Detailed explanation-1: -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-2: -The correct answer is b. The value of all its intermediate goods produced in a year. The GDP only counts the value of the final goods.
Detailed explanation-3: -Government purchases include any spending by federal, state, and local agencies, with the exception of debt and transfer payments such as Social Security.
There is 1 question to complete.