What economic activities are not included in GDP?

1 answer:

5 0

1. Illegal and unreported economic activity: While goods such as illegal drugs, gambling, and prostitution are sold in markets, the transactions are hidden for obvious reasons.

2. Home production and bartered goods/services: If cash doesn't change hands, the transaction will not be included in GDP. One of the somewhat misleading aspects of GDP is that whether certain things are included depends not on the nature of the good or service, but whether it was (openly) exchanged for cash.

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<h3>What is retail price?</h3>

The retail price is the price that a customer will pay when purchasing a product at a retail store. This is the final price that customers pay for the goods purchased.

Here, other expense cost are added before a retail price is decided by a seller so that they can have profit from the sale.

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