Answer:
Step-by-step explanation:
GDP stands for gross domestic product and represents the total production of a nation within its domestic borders.Gross domestic product (GDP) refers to the total value of the goods and services that a nation produces during a one-year period.
We know from the formula of GDP that gross domestic product = consumption + investment + government purchases + (exports - imports).
However, there are some transactions that take place every day that don't get counted in the GDP. Let's talk about what's not included in the GDP and then look at some examples.
Basically, in order for something to be included in our GDP, it has to be something that is actually produced. It has to be something that isn't used to produce something else. It has to be produced here and not somewhere else, and it also has to be legal.
What's Not Included in the GDP
So here is a list of things that are not included:
1.Sales of goods that were produced outside our domestic borders
2.Sales of used goods
3.Illegal sales of goods and services (which we call the black market)
4.Transfer payments made by the government
5.Intermediate goods that are used to produce other final goods