Which of the Following Is Counted in GDP

question 45

Multiple Choice

Which of the following is counted in GDP?

• A)the value of goods and services produced in the underground economy
• B)the cost of a speed boat purchased by drug smugglers
• C)the value of do-it-yourself work
• D)the value of leisure

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Definitions:

Equilibrium Level

The state of balance where demand equals supply in a market, resulting in an optimal distribution of resources without excess supply or demand.

Price Ceiling

A maximum legal price above which a product cannot be sold; to have an impact, a price ceiling must be set below the equilibrium price.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Shortage

A market condition characterized by the demand for a product exceeding its supply, often leading to increased prices.