The cabbages you grow in your summer garden are:
a. counted in GDP under C.
b. counted in GDP under I.
c. counted in GDP but not NDP.
d. not counted in GDP.
e. counted in final sales but not GDP.
Gross Domestic Product (GDP):
GDP measures the dollars of the final output of goods and services produced and sold in an economy during a specified time frame - a month, a quarter, or a year. Only goods produced during the time period are counted, and only goods sold are counted. For example, used cars are not counted except in the year they were originally made. And unpaid housework and child care are also not included.
Answer and Explanation:
The cabbages you grow in your summer garden are d. not counted in GDP.
Not counted if you feed them to your family or give them to your neighbors. If you sell them at the Farmer's Market, then they become part of GDP.
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Learn more about this topic:
from CLEP Social Sciences and History: Study Guide & Test PrepChapter 59 / Lesson 2