Which of the Following Will Be Excluded from the Measurement

question 22

Multiple Choice

Which of the following will be excluded from the measurement of gross domestic product (GDP) ?

• A)The market value of automobiles purchased by the federal government
• B)The market value of California wine purchased by a Canadian firm
• C)The payment of employees' medical insurance
• D)The market value of computers purchased by state governments
• E)The market value of transactions in the underground economy

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Definitions:

Monthly Rent

The regular payment made to a landlord or property owner for the use of premises or equipment for a month.

Office Supplies

Items used in an office for daily operations, such as paper, pens, and staplers, typically classified as short-term assets.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditure to the correct period.

January

The first month of the year in the Gregorian calendar, often associated with new beginnings and resolutions.