Which One of the Following Is NOT Included in GDP

question 316

Multiple Choice

Which one of the following is NOT included in GDP?

• A) The federal government pays a defense contractor to develop a new weapons system.
• B) You volunteer to organize a neighborhood watch group on your block.
• C) You pay your monthly apartment rent.
• D) A mail-order firm constructs a new warehouse in Kansas as a central distribution facility.

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Definitions:

Carrying Value

The amount at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment losses.

Inventory

Goods and materials that a business holds for the ultimate goal of resale.

Declared Dividend

A dividend that has been announced by a company's board of directors to be paid to shareholders on a specified date.

Net Assets

The total value of a company’s assets minus its liabilities, indicating the actual worth of the company’s equity.