Chapter 13.1, Problem 2R

To determine

To discuss: The four categories used by economists to find GDP and their examples.

Explanation of Solution

The four categories that are used by economists to find the value of GDP with their examples are as listed below:

Government goods and services

1. National defense products 2. Public health services

Net exports

1. Goods traded to foreign country. 2. Goods purchased from foreign countries.

Consumer goods and services

1. Food products 2. Education services

Investment goods and services

1. Machineries 2. Financial advisory services

Economics Concept Introduction

Introduction:

Gross domestic product- The value of gross domestic product tells the amount of goods and services that are available within the borders of a country. The importance of GDP is that give information about the size of economy and the performance of economy.