Final answer:
GDP includes the cost of hospital stays and child care provided by a licensed day care center. It does not include the rise in life expectancy over time, child care provided by a grandmother, a used car sale, the greater variety of cheese available in supermarkets, or the iron used in the production of a refrigerator.
Step-by-step explanation:
a. The cost of hospital stays: The cost of hospital stays is included in GDP. When individuals pay for hospital stays, it contributes to the total value of goods and services produced within a country during a specific time period.
b. The rise in life expectancy over time: The rise in life expectancy over time is not included in GDP. Although it is an important social indicator, it is not a direct measure of economic production.
c. Child care provided by a licensed day care center: Child care provided by a licensed day care center is included in GDP. This is because it represents a service that is paid for and contributes to the economy.
d. Child care provided by a grandmother: Child care provided by a grandmother is not included in GDP. Unpaid services, such as those provided by family members, are not counted in GDP calculations.
e. A used car sale: A used car sale is not included in GDP. Only the sales of newly produced goods and services are counted.
f. A new car sale: A new car sale is included in GDP. This transaction represents the purchase of a newly produced good.
g. The greater variety of cheese available in supermarkets: The greater variety of cheese available in supermarkets is not included in GDP. This represents an improvement in the quality of goods, but not an increase in the quantity of goods produced.
h. The iron that goes into the steel that goes into a refrigerator bought by a consumer: The iron that goes into the steel that goes into a refrigerator bought by a consumer is not included in GDP. This is because it is an intermediate product used in the production process and is not a final good or service.