ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A social security payment to a retired teacher in country X in 2015.
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Textiles produced during 2015 in country Z, by a firm owned by a resident of country X.
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The value of topsoil lost in country X in 2015.
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Canned soup produced in 2014 in country X but consumed in 2015.
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Shoes produced in country X in 2015, but not sold or consumed in 2015.
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Detailed explanation-1: -The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.
Detailed explanation-2: -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-3: -All final goods and services are included in GDP, but not the value of intermediate goods. The value of intermediate goods is not included in GDP. Intermediate goods are used as raw materials for the production of final goods, the value of which is already included.
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.