ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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profits on the sale of a 25-year-old house.
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the monetary value of someone babysitting in exchange for a room.
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the income of a high school English teacher.
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the price of the steel used to build a new hotel.
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Detailed explanation-1: -GDP is composed of goods and services produced for sale in the market and also includes some nonmarket production, such as defense or education services provided by the government. An alternative concept, gross national product, or GNP, counts all the output of the residents of a country.
Detailed explanation-2: -Explanation: GDP at factor cost = Net Value Addition + Depreciation is correct.
Detailed explanation-3: -GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). GDP is usually calculated by the national statistical agency of the country following the international standard.
Detailed explanation-4: -The formula for GDP is: GDP = C + I + G + (X-M). C is consumer spending, I is business investment, G is government spending, and (X-M) is net exports.