Question

Which of the following is excluded from calculations of GDP? . Select one: O a. Goods that bring little value to society. O b. Income received by managers of corporations. O c. Used items such as cars, and purchases on E-Bay. O d. Items that are exported for sale overseas. Question 29 Not yet answered Points out of 1.00 P Flag question Which of the following is government spending on goods and services? Select one: O a. Medicare benefits. O b. Donated clothing from the Salvation Army. O c. A new Community College campus. d. All of the above.

Answer 1

Question 1

Gross domestic product includes the value of final goods and services produced within the domestic territory of a country during a year.

This implies that final goods and services that are produced in the current year are included in that year's GDP.

Used goods are already included in the GDP of the year in which they were produced. So, if such goods are again included in the GDP in the year in which they are resold then such inclusion will result in the problem of double counting.

So, in order to avoid the problem of double counting, used goods or second hand goods are not included in the GDP.

Hence, the correct answer is the option (c) [Used items such as cars, and purchases on E-Bay].