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Which of the following is included in GDP? a. The value of "free" household services provided by at-home spouses rather than a paid cook, maid, and baby sitter. b. The value of unpaid-for volunteer time. c. The unpaid-for services provided by the natural environment, such as breathable air. d. Net exports: (value of exports - value of imports).

Which of the following is included in GDP? a. The value of "free" household services provided by at-home spouses rather than a paid cook, maid, and baby sitter. b. The value of unpaid-for volunteer time. c. The unpaid-for services provided by the natural environment, such as breathable air. d. Net exports: (value of exports - value of imports).

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**Question:** Which of the following is included in GDP? - a. The value of "free" household services provided by at-home spouses rather than a paid cook, maid, and babysitter. - b. The value of unpaid-for volunteer time. - c. The unpaid-for services provided by the natural environment, such as breathable air. - d. Net exports: (value of exports – value of imports). **Explanation:** This question tests your understanding of what is counted in a country's Gross Domestic Product (GDP). GDP measures the total value of all finished goods and services produced within a country's borders in a specific time period and includes: - Market transactions that have clear monetary value. - The value of goods and services produced for sale in the market. Items like unpaid household services, volunteer time, and natural environmental services do not have monetary transactions and thus, are not included in GDP. The correct answer here is "d. Net exports," which are factored into GDP calculations.
Transcribed Image Text:**Question:** Which of the following is included in GDP? - a. The value of "free" household services provided by at-home spouses rather than a paid cook, maid, and babysitter. - b. The value of unpaid-for volunteer time. - c. The unpaid-for services provided by the natural environment, such as breathable air. - d. Net exports: (value of exports – value of imports). **Explanation:** This question tests your understanding of what is counted in a country's Gross Domestic Product (GDP). GDP measures the total value of all finished goods and services produced within a country's borders in a specific time period and includes: - Market transactions that have clear monetary value. - The value of goods and services produced for sale in the market. Items like unpaid household services, volunteer time, and natural environmental services do not have monetary transactions and thus, are not included in GDP. The correct answer here is "d. Net exports," which are factored into GDP calculations.
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