Question

In: Economics

Which of the following items would be left out when calculating GDP?

Counted in GDP

Not counted in GDP

paying someone "off the books" to change the oil in your car

changing the oil in your car yourself

buying a birthday cake at the grocery store

time spent lying in a hammock

pirated software

clothing produced in another country but bought at a local boutique

tickets to see a movie about pirates

salaries of public school teachers

Expert Solution

Counted in GDP:

buying a birthday cake at the grocery store
tickets to see a movie about pirates
salaries of public school teachers
clothing produced in another country but bought at a local boutique

Not counted in GDP:

pirated software
changing the oil in your car yourself
paying someone "off the books" to change the oil in your car
time spent lying in a hammock

The following items are not included in GDP:

Sales of used goods
Unreported legal business activity does not count
Illegal sales of goods and services - black market
Transfer payments made by the government - welfare, unemployment, social security
Intermediate goods

Rahul Sunny answered 2 years ago

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