ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$50 cash earned but not reported by your neighbor for babysitting
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Income earned as a lifeguard at a summer camp
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The purchase of a used car from a friend
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The purchase of a vintage surfboard from thrift store
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The purchase of one company by another company
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Detailed explanation-1: -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-2: -The calculation of a country’s GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).
Detailed explanation-3: -Which of the following would be included in this year’s GDP? consumption, investment, government consumption and gross investment, and net exports.
Detailed explanation-4: -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).