In measuring GDP, which of the following is included?
A) The value of shares and bonds bought and sold.
B) The value of preparing meals at home.
C) The value of increases in business inventories.
D) The value of used goods when they are sold.
E) The value of durable consumption goods but not the value of nondurable consumption goods.

Question

Quizplus · Accepted Answer

The value of increases in business inventories is included in the measurement of GDP because it represents goods that have been produced but not yet sold, reflecting current economic activity. Other options like the value of shares and bonds (A), preparing meals at home (B), the sale of used goods (D), and the exclusion of nondurable goods (E) are not included in GDP calculations. Shares and bonds are financial transactions not reflecting current production, home meal preparation is not a market transaction, used goods do not represent new production, and both durable and nondurable goods are included in GDP if they are newly produced.

In Measuring GDP, Which of the Following Is Included