Which of the following goods and services are omitted from GDP?

Question

Quizplus · Accepted Answer

Household production, such as cooking and cleaning services done by family members at home, is not included in GDP.

Answer: D 
 Capital goods, such as machinery and equipment used in production, are not directly included in GDP because they do not generate final goods and services for consumption.

Answer: E 
 Expenditures on resources used to protect the environment, such as pollution control equipment and clean-up efforts, are not included in GDP calculations as they do not contribute directly to the production of goods and services.

Therefore, choices A and B are not correct as they are included in GDP - government weather satellites are included in government spending, and services such as hair styling are included in personal consumption expenditures.

Which of the Following Goods and Services Are Omitted from GDP