GDP is defined as the market value of all final goods and services produced within a country in a given period of time. In spite of this definition, some production is left out of GDP. Explain why some final goods and services are not included
GDP excludes some products because they are so difficult to measure. These products include services performed by individuals for themselves and their families, and most goods that are produced and consumed at home and, therefore, never enter the marketplace. In addition, illegal products are not included in GDP.
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People respond to incentives
A) by ignoring negative incentives and responding to positive incentives only. B) only when they are irrational. C) as they never intentionally make decisions that would leave them worse off. D) when they have low incomes.
Between 1870 and 1913, labor migration from the "Old World" (Europe) to the "New World" (the United States, Canada, and Australia):
a. decreased the rate of growth of real wages in the New World and increased the rate of growth of real wages in the Old World. b. increased the rate of growth of real wages in the New World and decreased the rate of growth of real wages in the Old World. c. decreased the rate of growth of real wages in both the New and Old Worlds. d. increased the rate of growth of real wages in both the New and Old Worlds.
In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that maximizes
A. profit. B. the wage. C. strike duration. D. output. E. labor costs.
Arable land, water, machinery, and a professional baseball player are all considered scarce economic _______________ used in the production of goods and services.
Fill in the blank(s) with the appropriate word(s).