Which statement is true regarding GDP?
A) Purchases of intermediate goods are included as a specific category.
B) Purchases of used items are included.
C) The value of services that are purchased is included.
D) The market value of nonmarket production is included.

Question

Quizplus · Accepted Answer

GDP includes the market value of all final goods and services produced within a country in a given period. Services purchased are considered final goods and are included in GDP calculations. Intermediate goods (used in the production of final goods), purchases of used items, and nonmarket production (such as household work) are not included in GDP.

Which Statement Is True Regarding GDP