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Which of the following would be included in U.S. GDP calculations? A. An auto mechanic fixing his...

Question:

Which of the following would be included in U.S. GDP calculations?

A. An auto mechanic fixing his dentist's car for a filling

B. A stay-at-home dad providing childcare for his children

C. A worker donating $200 to the Red Cross

D. High school students spending their Saturdays building homes for the homeless

E. A college student paying another student $50 in cash for a used laptop

Gross Domestic Product

Gross Domestic Product measures total production in an economy. It is the market value of all final goods and services produced in a country in a give year.

Answer and Explanation:

Answer: C. A worker donating $200 to the Red Cross

GDP is the market value of all final goods and services produced in the U.S. in the given year. Option A, B, and D refers to household productions which are not reported to the government and therefore are not part of the official GDP calculation. The college student in option E is not buying a product that represents current production since it is a used laptop. Therefore, it is not part of the GDP, either. With option C, the Red Cross might used the donated money to buy something that adds to the economy. Therefore, it is part of the GDP.


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
4.2K

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