Question

Which of the following items would be included in the calculation of gross domestic product (GDP)?

Answer 1

Items included in GDP are the cost of hospital stays, child care from licensed day care centers, used and new car sales, and the iron used in a consumer's refrigerator. Items not included in GDP are the rise in life expectancy, child care from grandmothers, and the greater variety of cheese in supermarkets.

Step-by-step explanation:

Gross Domestic Product (GDP) is the total monetary value of all final goods and services produced within a country in a given year. To calculate GDP, statisticians include the value of goods and services that are bought and sold in the economy. Therefore, the items that would be included in the calculation of GDP are:

1. The cost of hospital stays
2. Child care provided by a licensed day care center
3. A used car sale
4. A new car sale
5. The iron that goes into the steel that goes into a refrigerator bought by a consumer

Items that are not included in GDP are:

1. The rise in life expectancy over time
2. Child care provided by a grandmother
3. The greater variety of cheese available in supermarkets