Question

Which of the following items is a discretionary expenditure?

a. Union wages.
b. Factory building to produce inventory.
c. Advertising.
d. Taxes.

Answer 1

The cost of hospital stays, child care provided by a licensed day care center, used car sale, new car sale, 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 included in GDP. The rise in life expectancy over time is not included in GDP.

Step-by-step explanation:

The following items are included in GDP:

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 greater variety of cheese available in supermarkets
6. The iron that goes into the steel that goes into a refrigerator bought by a consumer

The following item is not included in GDP:

• The rise in life expectancy over time