ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a market basket price
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a base year
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X100
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GDP for current year
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Detailed explanation-1: -Sales of used goods. Illegal sales of goods and services (which we call the black market) Transfer payments made by the government. Intermediate goods that are used to produce other final goods.
Detailed explanation-2: -The CPI does not include investment items, such as stocks, bonds, real estate, and life insurance. (These items relate to savings and not to day-to-day consumption expenses.)
Detailed explanation-3: -The GDP price index, like the CPI, measures price change for consumer goods and services, but also measures price change for goods and services purchased by businesses, governments, and foreigners. However, unlike the CPI, the GDP price index does not measure price change for imports.
Detailed explanation-4: -Answer and Explanation: The correct answer is b. The value of all its intermediate goods produced in a year. The GDP only counts the value of the final goods.
Detailed explanation-5: -Intermediate goods that have been turned into final goods and services (e.g. tires on a new truck) Used goods. Transfer payments. Non-market activities. Illegal goods.