ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes
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No
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Either A or B
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None of the above
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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: -Examples include clothing, food, and health care. Investment, I, is the sum of expenditures on capital equipment, inventories, and structures. Examples include machinery, unsold products, and housing. Government spending, G, is the sum of expenditures by all government bodies on goods and services.
Detailed explanation-3: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
Detailed explanation-4: -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.