Which of the following must be included in the calculation of GDP?
A)The sale of a used car to an auto dealer
B)Bartering lawn care services for car washes
C)A father staying at home to attend to his child
D)The sale of an illegal cable box
E)Payment made for a SAT preparation class

Question

Quizplus · Accepted Answer

Payment made for a SAT preparation class must be included in the calculation of GDP because it is a transaction that involves the production of a service. Goods and services that are produced and sold in the market are included in the calculation of GDP, whether they are legal or illegal.

The other options, A, B, and C, do not involve the production of new goods or services and therefore do not contribute to GDP. Selling a used car to an auto dealer is simply transferring ownership of an existing good, bartering does not involve a market transaction, and staying at home to attend to a child does not involve any economic activity. The sale of an illegal cable box involves an illegal activity and therefore cannot be included in GDP.

Which of the Following Must Be Included in the Calculation