ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It considers the market value of both intermediate and final goods and services.
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It includes the market value of all final goods and services.
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It includes all final goods and services produced in the nation within a set time period.
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Consumer spending is a big factor in the expenditure model of GDP.
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Detailed explanation-1: -Detailed Solution. The correct answer is Used vehicle sales. Used vehicle sales are not included in GDP. Only newly produced goods-including those that increase inventories-are counted in GDP.
Detailed explanation-2: -The dollar value of total output is equal to the total monetary value of all [blank] goods and services produced. Which of the following statements is not true about the use of GDP as a measure of national welfare? GDP is a useful measure of national welfare since it excludes nonmarket transactions.
Detailed explanation-3: -Economists do not factor intermediate goods when they calculate gross domestic product (GDP). GDP is a measurement of the market value of all final goods and services produced in the economy. The reason why these goods are not part of the calculation is that they would be counted twice.
Detailed explanation-4: -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.