Question

Which of the following items is included in the calculation of GDP? a.purchase of 100 shares of Microsoft stock b.purchase of a used car c.the value of a homemaker's services d.sale of Gulf War military surplus e.None of the answers above would be included SubmitNext

Answer 1

Answer:

The correct answer is option e.

Explanation:

The GDP of a country is the value of final goods and services produced in the geographical boundaries of a nation in a year. It does not include the value of intermediate goods produced. This is because it may lead to double counting. So the value of intermediate goods is included as a part of the value of the final good. It also does not include the value of services provided by homemakers.

Financial transactions such as purchase and sale of stocks and shares are not included. This is because it does not involve the production of any good or service. Sale of second-hand goods is also not included because of the problem of double counting.