Which of the following is included in GDP? the market value of rental housing se

Question

Which of the following is included in GDP? the market value of rental housing services, but not the market value of owner-occupied housing services. The market value of owner-occupied housing services, but not the market value of rental housing services. both the market value of rental housing services and the market value of owner-occupied housing services neither the market value of owner-occupied services nor the market value of rental housing services. Michigan Tea Company sold $15 million worth of tea it produced. In producing the tea it purchase million dollars worth of ingredient from foreign countries and paid workers who reside in coin mule to the U.S. $1 million. How much did these transaction add to U.S. GDP? $21 million $15 million $10 million $9 million The residents of country A cam $500 million of income from abroad. Residents of other million in country A. These earnings are accounted for in country A'S GNP which is larger than GDP in country A. GNP which is smaller than GDP in country A. GDP which is larger than GNP in country A. GDP which is smaller than GNP in country A. Social Security payments are included in GDP because they represent current income. included in GDP because they represent potential consumption. excluded front GDP because they ate not private pensions. excluded from GDP because they do not reflect the economy's production After the terrorist attacks on September 11, 2001, governments within the United increase security at airports. These purchases of goods and sen ices are not included in GDP since they do not represent production. not included in GDP since the government collects taxes to pay for them. included in GDP since government expenditures on goods and services are inc GDP. included in GDP only to the extent that the federal government, rather than governments, paid for them. The U.S. government pays an economist at the U.S. Department of Commerce The economist then retires. In 2007, the government pays him $30,000 in following is correct?

Explanation / Answer

1. c. both the market value of rental housing services and the market value of owner-occupied housing services.

2. b. $ 15 million as GDP includes the value of final good rather than the value of inputs used in the production of final good.

3. Question is incomplete

4. d. excluded from GDP because they do not reflect the economy's production. Social security payment is a transfer payment and these are not included in the estimation of GDP.

5. c. included in GDP since government expenditure on goods and services are included in GDP.

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