Explain Why Each of the Following Items Is Excluded from GDP

question 123

Essay

Explain why each of the following items is excluded from GDP:
(a) profits from the stock and bond market
(b) transfer payments
(c) sale of used goods
(d) goods and services produced in the home

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Response

An automatic, innate reaction to a stimulus that does not depend on prior learning or conditioning.

Negative Punishment

A behavioral strategy involving the removal of a desirable stimulus following an undesirable behavior to decrease the likelihood of the behavior's recurrence.

Positive Punishment

A behavior modification technique that involves the addition of an unpleasant stimulus to decrease the likelihood of a behavior reoccurring.