Question

1) List one product or service you have purchased/paid for recently that would be included in GDP. a) Which component (C, I, G, or NX) of GDP would it fall into?

2) List one product or service you have purchased/paid for recently that would NOT be included in GDP. a) Why wouldn’t it be included?

3) The participation of women in the U.S. labor force has risen dramatically since 1970. How do you think this rise affected GDP?

Answer 1

1. Recently I bought a mobile, which comes under consumption expenditure. Which is included under GDP. Because in the domestic time frame, only the final value of goods and services produced in 1 year is included in GDP.

2. I recently purchased a 1 second hand car, because it was produced 5 years ago and it has already been included in GDP, at the present time it has no relation with the production. Price will not be included in GDP.

3. GDP has increased over the recent few decades due to an increase in the contribution of women to the American Labor Participate force as the amount of production has also increased at a rapid pace as women have contributed in various fields. Such as 94% women in child development services, 90% women in health and staff 88% registered nurses and 89% women in housekeeping work, in addition women are also contributed to GDP through other indirect works. Which is not included in GDP like family labor i.e. domestic works are not included in GDP. Minister of women has greatly increased contributions and can even increase the setting by promoting actions of women in many areas and equality their contribution to GDP.