Final answer:
In the context of US GDP, spending on tutoring services provided by a graduate student and on ink and paper by a US textbook company would be included, whereas purchases of a textbook produced in England and a used textbook are not. Other items such as hospital stays, child care services at a licensed center, and the sale of new cars are included, while the rise in life expectancy, unpaid child care, the sale of used cars, and product variety are not.
Step-by-step explanation:
The Gross Domestic Product (GDP) measures the economic output of a country within its borders, which includes goods and services produced in a given period. GDP includes final consumption, investment, government purchases, and net exports. Let's examine each option:
- Tutoring services provided by a graduate student: Yes, these services are included in GDP as they represent payment for educational services rendered within the country.
- Textbook produced in England: No, this is not included in US GDP because it is a product produced outside the US borders.
- Ink and paper by a US textbook company: Yes, this counts as an intermediate good and is part of the investment in inventory, which is included in GDP.
- Used textbook purchased from a friend: No, sales of used goods are not included in GDP as they were already accounted for in GDP when initially sold as new.
Expanding on this concept, here's an additional list of items and whether they are included in GDP:
- Cost of hospital stays: Included as it is a service provided.
- Rise in life expectancy: Not included, as it is an outcome, not an economic activity.
- Child care provided by a licensed day care center: Included, as it is a service sold.
- Child care provided by a grandmother: Not included if it's unpaid family care.
- Used car sale: Not included, as it does not represent new economic production.
- New car sale: Included, as it represents a final good sale in the economy.
- Greater variety of cheese in supermarkets: Not included directly, though the sale of cheese would be.
- Iron that goes into steel for a fridge: Included as part of the investment when producing the refrigerator.