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 is NOT included when calculating GDP for the United States?
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Cars manufactured in Japan, but sold in the United States
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Cars manufactured in the United States, but sold in Japan
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Cars manufactured in Michigan, but sold in Minnesota
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Cars manufactured in Michigan, but sold to the government
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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: -Detailed Solution. The correct answer is Used vehicle sales. Used vehicle sales are not included in GDP. Only newly produced goods-including those that increase inventories-are counted in GDP.
Detailed explanation-3: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
There is 1 question to complete.