Question

Which items count as part of this year's GDP?

Group of answer choices

final goods

      [ Choose ]            no            yes      

intermediate goods

      [ Choose ]            no            yes      

newly produced final goods

      [ Choose ]            no            yes      

the sale of new final goods

      [ Choose ]            no            yes      

newly produced capital goods

      [ Choose ]            no            yes      

used goods

      [ Choose ]            no            yes      

services

      [ Choose ]            no            yes      

government transfer payments

      [ Choose ]            no            yes      

Answer 1

Item	Counting as a part of this year GDP
1. Final good.	Yes (GDP is the market value of all final goods and services produced during the year of computing GDP)
2. Intermediate goods.	NO (The goods that are used for further production of goods are excluded from the value of GDP because the value of such goods already include in the value of final goods, if we count the final value of a good and value of intermediaries, there will be double counting.)
3. Newly produced final goods.	Yes Newly produced final goods in the year of GDP computation are included.
4. Sale of new final goods.	Yes (Under expenditure method the sale of new final goods is included)
5. Newly produced capital goods.	Yes (GDP includes the value of newly produced consumer goods as well as capital goods)
6. Used goods.	NO (Used goods are not included in GDP. They are produced and counted in the previous year)
7. Services.	Yes (GDP includes the value of final goods and services)
8. Government transfer payments.	NO (Transfer payments are not included in GDP because they are not money created through production process. They are simply transfer of money from government to citizens.