Question

Which of the following items are included in official U.S. GDP statistics? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. Money spent to clean up a toxic waste site in Ohio. unanswered The dollar value of the annoyance felt by local citizens living near a noisy airport in Georgia. unanswered Andre paying Ted for a haircut in Chicago. unanswered Emily and Aliya trading an hour of dance lessons for a haircut in Dallas. unanswered Revenue generated by illegal marijuana growers. unanswered Revenue generated by legal medical marijuana sales in California. unanswered

Answer 1

Answer:

Included in GDP

Money spent to clean up a toxic waste site in Ohio.

Andre paying Ted for a haircut in Chicago

Revenue generated by legal medical marijuana sales in California.

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

Money spent to clean up a toxic waste site in Ohio is part of government spending and it would be added in GDP

Andre paying Ted for a haircut in Chicago is part of consumption spending and it would be added as part of GDP

Revenue generated by legal medical marijuana sales in California is part of consumption spending and it would be added as part of GDP