ECONOMICS (CBSE/UGC NET)

ECONOMICS

GDP

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following would not be counted in GDP?
A
A widget produced in Missouri by a Canadian company.
B
A widget produced in Germany by a U.S. company.
C
A widget produced in Arkansas by a Chinese company.
D
A widget produced in Tennessee by a U.S. company.
Explanation: 

Detailed explanation-1: -The GDP includes only the finished goods and services and does not include the intermediate goods produced.

Detailed explanation-2: -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-3: -Only newly produced goods-including those that increase inventories-are counted in GDP. Sales of used goods and sales from inventories of goods that were produced in previous years are excluded. Only goods that are produced and sold legally, in addition, are included within our GDP.

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.

There is 1 question to complete.