Which of the Following Activities Is Excluded from GDP, Causing

question 43

Multiple Choice

Which of the following activities is excluded from GDP, causing GDP to understate a nation's well- being?

• A) the services of used-car dealers
• B) the child-care services provided by stay-at-home parents
• C) the construction of new houses
• D) government expenditures on military equipment

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Definitions:

Liability

Refers to the state of being legally responsible for something, typically a debt or obligation.

Weekend Business Activity

Commercial or professional transactions conducted during Saturday and Sunday.

Truck Expenses

Costs associated with operating and maintaining a truck, including fuel, repairs, maintenance, and insurance.