Which of the Following Would Not Be Included in GDP

question 12

Multiple Choice

Which of the following would not be included in GDP?

• A)you hire someone to fix a leaky faucet
• B)you clean the house before relatives visit
• C)the value of housing services if you own your own home
• D)an unplanned drop in business inventories
• E)the Federal government buys U.S.soybeans to ship to Russia

---

Definitions:

Flotation Costs

Financial outlays a business faces when it issues new stocks, covering charges for underwriting, legal services, and registration documentation.

Retained Earnings

The portion of a company's profits that is kept or retained within the company instead of being paid out to shareholders as dividends, often used for investment or to pay off debt.

IRR

Internal Rate of Return; a financial measurement tool utilized to assess the potential profit of investment opportunities.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate of return a company is expected to pay to all its security holders.