Question

Some items are not counted in GDP for various reasons. Identify three categories that are not counted and explain why they are excluded.

Answer 1

1.- Sales of used goods are not counted. It has sense because if they were counted we would have double the counting.

2.- Goods and services that are sold in the black market or illegal goods and services because they are extremely difficult to count.

3. Intermediate goods that are used to produce other final goods because the counting of intermediate goods counting will lead to double counting .