Question

Which aspect is NOT included in the calculation of the U.S. GDP?

a) Measure the value of exports and imports.

b) Include final goods.

c) Measure how much of the production improves the quality of life of its people.

d) Include new production.

Answer 1

The GDP does not include the measure of how production improves quality of life; it accounts for the economic value of final goods and services only.

Step-by-step explanation:

The aspect NOT included in the calculation of the U.S. Gross Domestic Product (GDP) is (c) measuring how much of the production improves the quality of life of its people. GDP calculations focus on the economic value of goods and services but do not directly measure non-monetary aspects such as quality of life or life expectancy enhancements. Included in the GDP are the cost of hospital stays (a), child care provided by a licensed day care center (c), and new car sales (f). Items not included in the GDP are the rise in life expectancy over time (b), unpaid child care, such as that provided by a grandmother (d), the sale of used cars (e), a greater variety of cheese (g), and intermediate goods like iron that goes into steel for products, which is excluded to prevent overstating the economy (h). GDP includes only the final value of goods and services in the production chain.