Final answer:
The GDP includes transactions such as hospital stays, child care from licensed centers, and new car sales, while it excludes non-market items like life expectancy changes, unpaid child care, used car sales, product variety, and the value of intermediate goods.
Step-by-step explanation:
The Gross Domestic Product (GDP) includes all market transactions where goods and services are bought and sold for money within a country during a given period. Based on this definition:
- Hospital stays are included in GDP as they involve transactions for healthcare services.
- Changes in life expectancy are not included in GDP because they do not involve a market transaction.
- Child care provided by a licensed day care center is included in GDP as it is a paid service.
- Child care provided by a grandmother is not included in GDP unless the service is paid for and reported as income.
- A used car sale is not included in GDP because the car is not newly produced within the current year.
- A new car sale is included in GDP as it is a transaction for a new good produced within the period.
- The greater variety of cheese available in supermarkets is not included in GDP because variety itself is not a transaction.
- The iron that goes into the steel for a refrigerator is an intermediate good and is not counted separately in GDP as it is part of the final product's value.