Which of the Following Goods and Services Are Omitted from GDP

question 93

Multiple Choice

Which of the following goods and services are omitted from GDP?

• A)capital goods
• B)expenditure on resources used to protect the environment
• C)government weather satellites
• D)household production
• E)services such as hair stylings

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Definitions:

T-bill Rate

The interest rate earned by investors in U.S. Treasury bills, which are short-term government securities.

Out-of-the-money

Describes an option that would not make money if it were exercised immediately because its strike price is not favorable compared to the current market price of the underlying asset.

Intrinsic Value

The perceived or calculated true value of an asset, investment, or company based on fundamental analysis rather than current market price.

Equilibrium

A state in which market supply and demand balance each other, resulting in stable prices and no tendency for change.