Which of the Following Would Not Be Included in GDP

question 59

Multiple Choice

Which of the following would not be included in GDP?

• A) production of the Ford plant in Mexico
• B) Production of the Toyota plant in Kentucky
• C) chicken that is prepared, fried, and sold by KFC in Buffalo
• D) membership in Pilates classes in New York
• E) a bus ticket to Miami

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Definitions:

Maximize Profits

A strategy or objective of firms to achieve the highest possible financial gain by optimizing production and sales, while minimizing costs.

Long-Run Cost Function

Describes the minimum cost at which a firm can produce any given level of output when all inputs, including capital, are variable.

Positive Output

The result of production processes that lead to an increase in the quantity of goods or services produced.

Long-Run Total Cost

The cumulative expense incurred by a firm when all inputs are variable, intended to capture the idea of planning and adjustment in the face of changing economic landscapes.