424,495 views
16 votes
16 votes
Which of the following is not included in GDP

User Trey Mack
by
2.4k points

2 Answers

13 votes
13 votes

Final answer:

In GDP calculations, the cost of hospital stays and new car sales are included. However, the rise in life expectancy, child care by a grandmother (unless paid and reported), used car sales, and the greater variety of cheese in supermarkets are not included. The value of intermediate goods like iron used in a new refrigerator is also not counted separately in GDP.

Step-by-step explanation:

In answering which of the following is not included in Gross Domestic Product (GDP), it's important to understand what counts as part of this economic measure. GDP includes the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period. Here's a breakdown of each item:

  • The cost of hospital stays is included in GDP as it is a service provided within the year.
  • The rise in life expectancy over time is not included in GDP as it is not a market transaction.
  • Child care provided by a licensed day care center is included in GDP since it is a paid service.
  • Child care provided by a grandmother is not included in GDP unless she is paid and reports this as income.
  • A used car sale is not included in GDP, as it was counted in the year the car was originally produced.
  • A new car sale is part of GDP since it's a transaction occurring within the year.
  • The greater variety of cheese available in supermarkets is not included in GDP as variety does not have a direct market value.
  • The iron that goes into the steel for a new refrigerator is not counted separately, as it is considered an intermediate good used to produce a final product which will be included in GDP.
User Nic Scozzaro
by
3.0k points
17 votes
17 votes
Joe pays a plumber $100 to fix a broken pipe.
User Teaforchris
by
3.5k points