Smokie Joe, a known drug-dealer, buys a taco salad at Wendy's. This amount is not included in nominal GDP because everyone knows that Joe got his money illegally.

Question

Quizplus · Accepted Answer

Nominal GDP includes all final goods and services produced within a country's borders, regardless of how the money was obtained. Illicit activities such as drug dealing are not considered in calculating GDP, but legal transactions such as buying a taco salad at Wendy's would be included.

Smokie Joe, a Known Drug-Dealer, Buys a Taco Salad at Wendy's