Question

Which of the following items is included in Japan’s GDP? A. the estimated value of production accomplished at home, such as backyard production of fruits and vegetables. B. the value of illegally-produced goods and services. C. the value of cars and trucks produced in foreign countries and sold in Japan. D. None of the above is included in Japan’s GDP.

Answer 1

Answer:

D) None of the above is included in Japanese GDP.

Explanation:

A country's GDP includes the value of all the finished and legal goods and services produced in an economy during one year.

GDP = consumption + investment + government spending + net exports

• Vegetables and fruits grown and consumed by an individual are not included in the GDP, unless they sell them to someone else.
• Illegal goods ans services are not included in the GDP.
• Imports, foreign products sold in a domestic market, lower the GDP since they lower net exports.