Which of the Following Is Not Included in GDP

question 40

Multiple Choice

Which of the following is not included in GDP?

• A)the value of the restoration of an old painting
• B)interest payments on the national debt
• C)the cost of a new vending machine
• D)government expenditure on a new bridge
• E)a purchase of legal services by a household

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Definitions:

Risk Free Asset

An investment with a guaranteed return and no risk of financial loss, typically government bonds.

Expected Returns

The anticipated profit or yield from an investment, considering both the risk and the return.

Variance of Returns

A statistical measurement of the dispersion or spread of a set of investment returns, used to understand investment risk.

Positively Correlated

A relationship between two variables where they move in the same direction, meaning that as one variable increases, the other variable also increases, and vice versa.