The calculation of GDP does NOT include the value of:
A) Firestone tires sold at your local garage.
B) Bridgestone tires purchased by Ford Motor Co.
C) Goodyear tires purchased by the United States Secret Service.
D) Michelin tires purchased by Canadian car collectors.

Question

Quizplus · Accepted Answer

GDP calculations exclude intermediate goods, such as Bridgestone tires purchased by Ford Motor Co., because their value is already included in the final goods (cars) produced by Ford.

The Calculation of GDP Does NOT Include the Value Of