Which of the Following Is Included in GDP

question 175

Multiple Choice

Which of the following is included in GDP?

• A) The value of "free" household services provided by at-home spouses rather than a paid cook, maid, and baby sitter.
• B) The value of unpaid-for volunteer time.
• C) The unpaid-for services provided by the natural environment, such as breathable air.
• D) Net exports: (value of exports − value of imports).

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Definitions:

Economies of Scale

Advantages in costs that companies gain by operating at larger scales, resulting in lower cost per unit as the scale expands.

Product Innovation

The process of developing new products or improving existing ones to meet changing consumer needs and preferences.

Process Innovation

The implementation of new or significantly improved production or delivery methods, enhancing efficiency or quality in the manufacturing or service sectors.

Venture Capital

Financing provided by investors to startups and small businesses with long-term growth potential.