Which of the following is included in GDP? A. Legal prescription drugs purchased from a pharmacy...

Question:

Which of the following is included in GDP?

A. Legal prescription drugs purchased from a pharmacy

B. Illegal recreational drugs purchased from a drug dealer

C. None of the answers

D. All prescription and recreational drugs

Gross Domestic Product (GDP):

Economists calculate GDP to be the dollar value of what is produced in an economy, either by the quarter or annually. The estimate includes consumer spending, business investment, government purchases, and the net of exports less imports.

Answer and Explanation:

Which of the following is included in GDP? A. Legal prescription drugs purchased from a pharmacy.

This is counted in GDP, whereas drugs that are illegal or purchased on the black market are not included. This is, in fact, one of the arguments for legalization of marijuana. When it becomes legal, it can be regulated and taxed, which does not happen while it is illegal.


Learn more about this topic:

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Overview of the Gross Domestic Product

from CLEP Social Sciences and History: Study Guide & Test Prep

Chapter 59 / Lesson 2
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