Final answer:
The option not representing an external business transaction is the expiration of an insurance policy; it's internal. For GDP, hospital stays, childcare by day care centers, and new car sales are included. Life expectancy, childcare by a grandmother, used car sales, cheese variety, and raw materials for appliances are not included in GDP.
Step-by-step explanation:
Among the options provided, the one that does not represent an external business transaction is option c: Expiration of an insurance policy over time. External transactions are those that involve the exchange of goods, services, or money with other entities outside the company. Purchasing office supplies, paying employees' salaries, and providing services to customers are all examples of external transactions as they involve interactions with external entities. In contrast, the expiration of an insurance policy is an internal event that reflects the passage of time and the recognition of the cost of an insurance premium within the company's financial records, but does not involve a direct interaction with an external party at the time of expiration.
Regarding Gross Domestic Product (GDP) calculation
The cost of hospital stays and child care provided by a licensed day care center are included in GDP as they are paid services.
A new car sale is also included in GDP as it reflects the economy's production of new goods.
Conversely, the rise in life expectancy over time, child care provided by a grandmother, a used car sale, the variety of cheese available, and the iron that goes into the steel for appliances are not counted in GDP. These items are either non-market transactions, resales, or intermediary goods which do not count as final economic output.