Which economic activities are NOT included in GDP? Check all that apply.

a the sale of used goods b payment of under-the-table wages c the salaries of service providers like physicians and teachers d harmful economic side effects like pollution e illegal drugs like marijuana f goods that were produced outside our domestic borders

Question

Business

Charlie Carney

17 September, 22:59

Which economic activities are NOT included in GDP? Check all that apply.

a the sale of used goods b payment of under-the-table wages c the salaries of service providers like physicians and teachers d harmful economic side effects like pollution e illegal drugs like marijuana f goods that were produced outside our domestic borders

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Answers (1)

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Victoria Craig · Answer 1

The answers are: A, B, D, E and F, or every answer except C.

a the sale of used goods

The sale of used goods are not included in GDP, as this would amount to double counting.

b payment of under-the-table wages - We cannot include this is GDP because the government does not have access to the information.

d harmful economic side effects like pollution - This is not measured as a loss to GDP, although it would be a more realistic figure if it was.

e illegal drugs like marijuana - For the same reason as B, this is not included.

f goods that were produced outside our domestic borders - The measure is called Gross Domestic Product, which means wealth that is produced domestically.

All answer except C are correct.