In computation of GDP, the following are not included except
In computation of GDP, the following are not included except
- A) all final goods produced and sold within the country
- B) all used good or goods sold outside of traditional market
- C) all produce from home gardens that is grown and consumed by household
- D) all the farm products that farmers exchange among themselves without ever being sold
Correct Answer: A) all final goods produced and sold within the country
Explanation
The question is asking about what is not included in the computation of GDP (Gross Domestic Product). GDP is the total value of all final goods and services produced in a country in a given period of time. The question presents four options and asks which one is not included in the calculation of GDP.
Option A states that all final goods produced and sold within the country are included in the GDP. This is true because GDP measures the value of all final goods and services produced within a country.
Option B states that all used goods or goods sold outside of traditional markets are not included in the GDP. This is also true because GDP only measures the value of new goods and services produced within the country.
Option C states that all produce from home gardens that is grown and consumed by households is not included in GDP. This is true because GDP only measures the value of goods and services that are sold in the market. Home production for personal consumption is not included in GDP.
Option D states that all farm products that farmers exchange among themselves without ever being sold are not included in GDP. This is false because GDP measures the market value of all final goods and services produced within a country, regardless of whether they are sold or exchanged. So, option D is the correct answer since it is the only option that is included in the calculation of GDP.
In summary, GDP measures the value of all final goods and services produced within a country, including those that are exchanged rather than sold. However, it does not include goods and services that are produced for personal consumption or sold outside of traditional markets.