Goods and services provided by state and local governments are:
A)included in GDP at market prices.
B)included in GDP at cost.
C)excluded from GDP because they are not sold in markets.
D)excluded from GDP because they are publicly provided.

Question

Quizplus · Accepted Answer

State and local government services, like police services, are typically not sold. But they are productive activities, so economists include them in GDP at the cost of production.

Goods and Services Provided by State and Local Governments Are