Which of the Following Is Omitted from GDP Calculations

question 113

Multiple Choice

Which of the following is omitted from GDP calculations?

• A) sales of used goods
• B) certain nonmarket goods and services
• C) legal and illegal underground activities
• D) transfer payments
• E) all of the above

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Definitions:

Cattle Ranchers

Individuals or businesses engaged in the raising and breeding of cattle for meat or milk production.

Marginal Revenue

The additional income generated from the sale of one more unit of a good or service.

Average Revenue

The income a business earns from each unit sold, determined by dividing the total income by the total quantity of units sold.

Profit-Maximizing

A company's goal or strategy of adjusting production and sale levels to achieve the highest possible profit under given market conditions.