-Which of the following is included when measuring Gross Domestic Product (GDP)?
A) the value of services of durable goods purchased in previous years
B) the value of leisure time
C) the value of services provided by homemakers
D) the rental income received by a landlord

Question

-Which of the following is included when measuring Gross Domestic Product (GDP)?
A) the value of services of durable goods purchased in previous years 
B) the value of leisure time 
C) the value of services provided by homemakers 
D) the rental income received by a landlord

Quizplus · Accepted Answer

Gross Domestic Product (GDP) measures the value of all final goods and services produced within a country's borders in a specific time period. It includes the rental income received by a landlord because this is a payment for the provision of housing services, which is part of the economy's output. The other options (A, B, C) are not included in GDP calculations. The value of services of durable goods purchased in previous years is not counted in current GDP to avoid double counting, as GDP focuses on current production. The value of leisure time and services provided by homemakers are not included because they do not involve a market transaction.

-Which of the Following Is Included When Measuring Gross Domestic