Question
Gross Domestic Product (GDP) is a measure of economic activity. Specifically, it’s the total value of all new goods and services produced in a country during a set period of time. Goods are objects that can be bought and sold, such as books and toys. Services are actions other people or businesses do for you, like cutting your hair or fixing your car. All goods and services have a price. These prices are added up when calculating GDP.
GDP is usually calculated every year or quarter of a year (three months). In the US, the Bureau of Economic Analysis calculates GDP every quarter and releases the data to the public.
Which of the following is not included in the calculation of a nation’s GDP?
A
money spent on hair cuts at a hair salon
B
soda sales at a restaurant
C
the sale of a newly produced good, like a new car
D
the sale of a previously owned good, like a used car
GDP is usually calculated every year or quarter of a year (three months). In the US, the Bureau of Economic Analysis calculates GDP every quarter and releases the data to the public.
Which of the following is not included in the calculation of a nation’s GDP?
A
money spent on hair cuts at a hair salon
B
soda sales at a restaurant
C
the sale of a newly produced good, like a new car
D
the sale of a previously owned good, like a used car
Answers
GPT-4o mini
D
the sale of a previously owned good, like a used car
Sales of previously owned goods are not included in the calculation of a nation's GDP because they do not represent new production. GDP measures only the value of new goods and services produced within a specific period.
the sale of a previously owned good, like a used car
Sales of previously owned goods are not included in the calculation of a nation's GDP because they do not represent new production. GDP measures only the value of new goods and services produced within a specific period.