Which of the following are included in the year’s GDP? which are excluded? Explain your answers 1. The value of Galaxy chrome books produced by Samsung in New Jersey. 2. A Monthly allowance that a college student receives from home. 3. The publication and sale of a college textbook.
Which of the following are included in the year’s GDP? which are excluded? Explain your answers
1. The value of Galaxy chrome books produced by Samsung in New Jersey.
2. A Monthly allowance that a college student receives from home.
3. The publication and sale of a college textbook.
GDP (Gross Domestic Product): It refers to the value of all finished goods and services that are produced in the territory of a country.
1) The value of Galaxy chrome books produced by Samsung in New Jersey.
The value of Galaxy chrome books produced by Samsung in New Jersey is included in GDP because Galaxy chrome books is a finished goods that will generate revenue and this revenue is contributed in GDP.
2. A Monthly allowance that a college student receives from home.
The monthly allowance that a college student receives from home is excluded from GDP because this monthly allowance is a part of student's parents income that was already included in GDP. So, again it will not include otherwise it will create the problem of double counting.
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