Consider Two Items That Might Be Included in GDP: (1)The

question 201

Multiple Choice

Consider two items that might be included in GDP: (1) The estimated rental value of owner-occupied housing;and (2) purchases of newly-constructed homes.How are these two items accounted for when GDP is calculated?

• A)Both item (1) and item (2) are included in the consumption component of GDP.
• B)Item (1) is included in the consumption component, while item (2) is included in the investment component.
• C)Item (1) is included in the investment component, while item (2) is included in the consumption component.
• D)Only item (2) is included in GDP and it is included in the investment component.

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Definitions:

Economic Hardship

A situation where an individual or community experiences financial stress, often due to unemployment, high living costs, or a decline in economic conditions.

Cash Crops

Agricultural crops grown primarily for sale to return a profit, such as tobacco, cotton, and sugar, rather than for personal use or sustenance.

Domestic Servants

Workers employed within a household to perform a variety of tasks and services like cooking, cleaning, and childcare, often without much legal protection or rights historically.

Aura of Authority

The perceived power or right of an individual or organization to lead and make decisions.