Which of the Following Expenditures Would Not Be Included in GDP

question 30

Multiple Choice

Which of the following expenditures would not be included in GDP?

• A) Purchase of a new lawnmower.
• B) Purchase of a second-hand car from the black market.
• C) Purchase of a ticket to the latest movie.
• D) All of the above would be counted in GDP.

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Definitions:

Direct Labor Rate Variance

The difference between the actual labor rate paid to workers and the standard labor rate, multiplied by the total hours worked.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or delivering a service.

Actual Rate

The current interest rate or the actual cost rate in various financial and business contexts.

Standard Rate

A predetermined rate often used for allocating costs to activities or products, based on budgeted or historical data.