Which of the following items is excluded from GDP?
A) services a barber performs in cutting hair
B) production and sale of hair-cutting equipment
C) services a barber performs in repairing his own hair-cutting equipment
D) the construction of a new barbershop

Question

Quizplus · Accepted Answer

GDP measures the total value of all goods and services produced over a specific time period within a country's borders. It includes services provided by professionals (like haircuts), production and sale of goods (including hair-cutting equipment), and construction of new buildings (such as barbershops). However, it excludes non-market transactions, such as the services a barber performs in repairing his own hair-cutting equipment, because these do not involve a market transaction.

Which of the Following Items Is Excluded from GDP