Asked by Johnathan Wagner on Jun 05, 2024
Verified
The gross domestic product (GDP) excludes:
A) the value of a new building.
B) the value of new stocks and shares.
C) the cost of a new vending machine.
D) government expenditure on a new bridge.
E) the money spent on the purchase of legal services by a household.
Gross Domestic Product
The full economic or market value of all the finished goods and services made within the geographical confines of a country in a particular period.
New Stocks
Shares representing ownership in a company that have been issued for the first time, often through an initial public offering (IPO).
Vending Machine
A vending machine is an automated device that provides items such as snacks, beverages, or tickets to consumers after money, a credit card, or a specially designed card is inserted into the machine.
- Comprehend the process of calculating and interpreting Gross Domestic Product, including the exclusions and inclusions within its computation.
Verified Answer
MW
Muhammad WaqasJun 11, 2024
Final Answer :
B
Explanation :
The GDP only includes final goods and services, not financial transactions such as the buying and selling of stocks and shares. Therefore, the value of new stocks and shares is excluded from the GDP.
Learning Objectives
- Comprehend the process of calculating and interpreting Gross Domestic Product, including the exclusions and inclusions within its computation.