ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Only goods and services produced domestically are included within the GDP. That means that goods produced by Americans outside the U.S. will not be counted as part of the GDP.
Detailed explanation-2: -All expenditures by companies located in a given country, even if they are foreign companies, are included in this calculation.
Detailed explanation-3: -GDP includes only goods and services produced by a nation’s own citizens and firms. Goods and services produced outside a nation’s boundaries by the nation’s own citizens and firms are included in GNP but are excluded from GDP.
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).
Detailed explanation-5: -Which products are excluded? In a free market economy, GDP includes only those products that are sold through the market. That is, consumers are willing to pay prices for the products they consume. In principle, GDP does NOT include those products consumers do not pay for.