Which of the Following Activities Is Not Counted in Our

question 222

Multiple Choice

Which of the following activities is not counted in our calculations of GDP?

• A) the purchase of a hammer for household repairs
• B) the labor services of a volunteer group building a home for a poor widow
• C) the purchase of new, domestically-produced tires for your old foreign car
• D) a haircut received and paid for at a beauty salon

---

Definitions:

Preemptive Rights

Privileges granted to existing shareholders to buy additional shares in the company before the shares are offered to the public, thereby protecting their ownership percentage.

Issued Stock

Refers to the number of shares that a company has officially issued to shareholders.

Preferred Stockholders

Investors who own preferred shares in a company, which typically gives them priority over common stockholders in terms of dividends and assets in the event of liquidation.

Corporate Creditors

Entities or individuals that have lent money or extended credit to a corporation and have a right to be repaid.