Final answer:
GDP includes hospital stays, child care services by a licensed provider, and new car sales. It does not include changes in life expectancy or the sale of used cars. The variety of goods in the market or intermediate goods like iron used in production are also excluded from GDP calculations.
Step-by-step explanation:
Components Included and Excluded from GDP
The calculation of Gross Domestic Product (GDP) includes many different types of economic activities, but there are also notable exclusions. The following is a breakdown of what is included and excluded:
Hospital stays are part of GDP as they represent a service provided by the healthcare industry.
Changes in life expectancy do not represent a market transaction and are not included in GDP.
Child care provided by a licensed day care center is part of GDP because it is a paid service.
Child care provided by a grandmother may only be part of GDP if it is a paid service and the income is reported.
A used car sale does not represent the production of new goods within the year and is therefore not included in GDP.
A new car sale is included in GDP as it reflects the current period's production.
The variety of cheese, regardless of its breadth, is not relevant to GDP calculations, unless it indicates a change in the production volume.
The iron that goes into steel for a refrigerator is considered an intermediate good and therefore is not counted separately in GDP. The value is captured when the final product, the refrigerator, is sold.