Final answer:
Deduction for AGI is the unreimbursed moving expenses for non-military employees, which is no longer deductible after 2017. Furthermore, GDP includes the cost of hospital stays, child care by licensed centers, and new car sales, but not the rise in life expectancy, unpaid child care by relatives, used car sales, variety of goods, or intermediate goods like raw materials in products.
Step-by-step explanation:
The correct answer to the student's question is d. Unreimbursed moving expenses of an employee (not in the military). This deduction applies to the Adjusted Gross Income (AGI) on a person's tax return. However, it's important to note that after the Tax Cuts and Jobs Act of 2017, unreimbursed moving expenses are no longer deductible for non-military individuals for federal income tax purposes. As for other options, a. State and local sales taxes, b. Interest on home mortgage, and c. Charitable contributions are itemized deductions, and they are only deductible from taxable income if you itemize your deductions instead of taking the standard deduction.
For Gross Domestic Product (GDP) consideration:
- a. The cost of hospital stays - Included (Goods and services)
- b. The rise in life expectancy over time - Not included (Not a market transaction)
- c. Child care provided by a licensed day care center - Included (Service)
- d. Child care provided by a grandmother - Not included (Non-market, unpaid service)
- e. A used car sale - Not included (Resale; not a current production)
- f. A new car sale - Included (Current production of goods)
- g. The greater variety of cheese available in supermarkets - Not included (Variety does not equate to economic transaction)
- h. The iron that goes into the steel that goes into a refrigerator bought by a consumer - Not included (Intermediate good; potential double counting)
These examples illustrate that GDP includes the market value of goods and services produced in a year within a country's borders, but does not account for non-market services, resale of goods, or health and wellbeing indicators such as life expectancy.