ECONOMICS
GDP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Yes-consumer spending
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Yes-Investment spending
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No-selling of personal items (not a business)
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No-not legal income
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Detailed explanation-1: -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-2: -[Expenditure on used goods is not part of GDP because these goods were part of GDP in the period in which they were produced and during which time they were new goods. Counting the sale of used goods would be double-counting and would distort the true level of production for a given period.]
Detailed explanation-3: -All final goods and services that are sold for the first time are included in the GDP. To avoid double measurement errors, second-hand goods are not included in the GDP unless they are improved.
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.