Final answer:
Certain economic activities like hospital stays, car sales, and production of goods are included in GDP, while non-market transactions like child care provided by a grandmother are not included.
Step-by-step explanation:
The cost of hospital stays, the rise in life expectancy over time, a used car sale, a new car sale, the greater variety of cheese available in supermarkets, and the iron that goes into the steel that goes into a refrigerator bought by a consumer are examples of economic activities that are included in GDP. These activities involve the production of goods and services that are accounted for in the calculation of GDP.
Child care provided by a licensed day care center is also included in GDP, as it involves the provision of a service for a fee by a business. However, child care provided by a grandmother is not included in GDP because it is not a market transaction. It is a non-monetized transaction that occurs within a family or household.
In summary, activities that involve market transactions, such as the sale of goods and services, are included in GDP. Non-market transactions, such as those occurring within a household or family, are not included in GDP.