Which of the following would be included in the GDP? a) the selling of illegal drugs...

Which of the following would be included in the GDP?

a) the selling of illegal drugs

b) unreported labor in sweatpants

c) the value if housework done by householders

d) buying a ticket to a Dodger-Expos game on your day off

Solutions

Expert Solution

GDP refers to tha amount of final goods and services produced within the domestic territory or any factor incomes earned from abroad.

A) selling of illegal drugs is not included in GDP because in GDP we measure the items having real value. While illegal things cannot be estimated properly. But one thing has to be keep in mind that it also depends on country to country. The European Union has made it mandatory from 2014 to include illegal items while calculating GDP.

B) Unreported labour is sweatpants is not included in GDP because this labour is not reported it might be possible that they are not contributing in any kind of production activity. They must be their for leisure.

C) the value of housework done by household is not included because it is done out of love and affection one cannot measure the value of or cost of work done.

D) buying a ticket to a Dodger-expose game on your day off is included in GDP because it is the final good or service that has been endorsed. Buying a ticket for any match or event is included in GDP.

Ans: D

Rahul Sunny answered 1 year ago

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