ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Illegal narcotics sales
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Running a plumbing business
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Selling produce
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Buying an American-made car
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Detailed explanation-1: -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-2: -Non-production transactions like transfer payments, second-hand sales are not included in the GDP calculations as these monetary transactions do not result in final good generation.
Detailed explanation-3: -The calculation of a country’s GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).
Detailed explanation-4: -In terms of the size of overall drug markets, the most recent UN estimates place total retail sales of illicit drugs at some $320 billion or 0.9 percent of GDP.