Which of the Following Is Included in GDP

question 371

Multiple Choice

Which of the following is included in GDP?

• A) medical marijuana purchased from a government-run pharmacy by a glaucoma patient
• B) recreational marijuana purchased from a drug dealer by a college student
• C) recreational marijuana produced and consumed by a man in his attic
• D) All of the above are included in GDP.

---

Definitions:

Retained Earnings

The portion of a company's profits that is kept or retained rather than paid out as dividends to shareholders.

Flotation Costs

Expenses incurred by a company in issuing new securities, including underwriting, legal, and registration fees.

Capital Gains

The profit earned from the sale of assets or investments when the selling price exceeds the purchase price.

CAPM

Capital asset pricing model. A statistical model of the investment world aimed at explaining how required returns are determined in financial markets and thereby how stock prices are set. Also see SML.