ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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is not counted in GDP
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is counted in GDP
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is added to GDP, then subtracted at the end of the year
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lowers GDP
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Detailed explanation-1: -Only goods that are produced and sold legally, in addition, are included within our GDP. That means that goods produced illegally are not counted.
Detailed explanation-2: -GDP includes the total value of final products that are produced and sold (and not resold) within the current year.
Detailed explanation-3: -Intermediate goods, which are goods that are used in the production of other goods, are excluded from GDP calculations.
Detailed explanation-4: -As GDP is mainly a market-based approach, it excludes non-market activity. This means ‘home production’ activities such caring for your own children or volunteering to help a charity are not included.
Detailed explanation-5: -Gross Domestic Product (GDP) is the overall measure of consumption, government spending, business investments, and net exports. Products included in the GDP include all new products made within domestic borders. Economic activities such as taxes or the sale of illegal goods are not counted in GDP.