Final answer:
Items such as the cost of hospital stays, child care provided by a licensed day care center, and the sale of new cars are included in GDP as they represent the market value of final goods and services produced. In contrast,
the rise in life expectancy, child care provided gratis by a family member, and used car sales are not included in GDP calculations.
Step-by-step explanation:
When considering which of the listed items are included in the Gross Domestic Product (GDP), it's important to understand that GDP is the total market value of all final goods and services produced in a country in a given year.
It includes all of private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade (exports are added, imports are subtracted).
- Real liabilities are obligations that involve the payment of money or the provision of goods and services. From the options provided:
- a) Income provision for dependents: This could be a real liability if it involves a financial obligation or commitment to provide income support for dependents.
- b) Personal Pension: This could be considered a real liability if it represents an obligation to pay into a pension fund, which would involve a financial commitment.
- c) College Fees: This is a real liability because it represents an obligation to pay for educational expenses, which typically involve the payment of money.
- Therefore, all three options (a, b, and c) could potentially be considered real liabilities depending on the specific terms and nature of the obligations.