ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Consumer spending
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Not counted in GDP
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Investment spending
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Net exports of goods and services
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Detailed explanation-1: -Household work is excluded from the estimation of GDP because GDP measures the value of economic activity within a country, and it is difficult to estimate the value of work performed by a household.
Detailed explanation-2: -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-3: -GDP includes the total value of final products that are produced and sold (and not resold) within the current year.
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).