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Which of the following is not considered a permanent difference?

a. Interest received on government obligations.
b. Fines resulting from violating the law.
c. Percentage depletion of natural resources.
d. Stock-based compensation expense.

User Derek Fan
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1 Answer

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Final answer:

The rise in life expectancy over time is not included in GDP.

Step-by-step explanation:

A. The cost of hospital stays: Hospital stays are included in GDP as they represent consumption of healthcare services.

B. The rise in life expectancy over time: The rise in life expectancy is not included in GDP as it is a measure of societal progress, not a transaction or economic activity.

C. Child care provided by a licensed day care center: Child care provided by a licensed day care center is included in GDP as it represents consumption of child care services.

D. Child care provided by a grandmother: Child care provided by a grandmother is not included in GDP as it is an unpaid service and does not involve a market transaction.

E. A used car sale: A used car sale is not included in GDP as it is a transfer of an existing asset and does not represent new production.

F. A new car sale: A new car sale is included in GDP as it represents new production and consumption of goods.

G. The greater variety of cheese available in supermarkets: The greater variety of cheese available in supermarkets is not directly included in GDP as it represents changes in consumer choices and preferences, not a transaction or economic activity.

H. The iron that goes into the steel that goes into a refrigerator bought by a consumer: The iron that goes into the steel that goes into a refrigerator bought by a consumer is included in GDP as it represents the value of intermediate goods used in the production process.

User Smart Home
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