Question

P Flag question Tommy Chong grows marijuana for home consumption (medicinal purposes only). This activity is: Select one: O a. Excluded from GDP because an intermediate good is involved. O b. Included in GDP because it reflects production. O c. Excluded from GDP in order to avoid double counting. O d. Productive but is excluded from GDP because no market transaction occurs.

Answer 1

1. d
(It is productive but as no market transaction occurs so it is not included in GDP.)

2. c
(VAM is the sum of value added to a product at each level of production.)

3. c
(It is purchased for final consumption so it is a final good.)