Which of the Following Will Be Excluded from the Measurement

question 22

Multiple Choice

Which of the following will be excluded from the measurement of gross domestic product (GDP) ?

• A)The market value of automobiles purchased by the federal government
• B)The market value of California wine purchased by a Canadian firm
• C)The payment of employees' medical insurance
• D)The market value of computers purchased by state governments
• E)The market value of transactions in the underground economy

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Definitions:

Pure Monopoly

A market structure where a single firm has exclusive control over the supply and pricing of a particular product or service, with no close substitutes available.

Sole Seller

A market situation where only one seller exists for a particular product or service, often referred to as a monopoly.

Pure Monopoly

A market structure where a single supplier dominates the market, with no close substitutes for the product or service offered, leading to high control over prices.

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent new competitors from easily entering an industry or area of business.