Which of the Following Activities Is Excluded from GDP,causing GDP

question 96

Multiple Choice

Which of the following activities is excluded from GDP,causing GDP to understate a nation's well-being?

• A) The services of used-car dealers.
• B) The child-care services provided by stay-at-home parents.
• C) The construction of new houses.
• D) Government expenditures on military equipment.

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Definitions:

Earning Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability on a per-share basis.

Total Equity

The sum of all stakes in a corporation, determined by subtracting total liabilities from total assets.

Times Interest Earned

Times interest earned is a financial ratio that measures a company's ability to meet its debt obligations by comparing its income before interest and taxes (EBIT) to its interest expenses.

Interest Expense

The cost incurred by an entity for borrowed funds; this expense is a non-operating cost that appears on the income statement.