Which of the Following Is NOT Included in Real GDP

question 283

Multiple Choice

Which of the following is NOT included in real GDP?

• A) production of services, such as the services of hair dressers
• B) production of goods that last less than a year, such as production of hot dogs
• C) production that takes place in the underground economy
• D) production of goods that last more than a year, such as a pair of roller blades

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Definitions:

Futures Position

An investment strategy involving contracts for the purchase or sale of assets at a future date at a price specified today.

Closed Out

The process of finalizing all positions in a security or contract, effectively ending all obligations or engagements in those positions.

Hedge

An investment position intended to offset potential losses or gains that may be incurred by a companion investment, a common risk management strategy.

Speculator

An investor who engages in the buying and selling of financial instruments with the aim of profiting from short-term market fluctuations.