Which of the Following Is NOT Included in the Calculation

question 160

Multiple Choice

Which of the following is NOT included in the calculation of Gross Domestic Product (GDP) ?

• A) the purchase of a raincoat by Mr. Z
• B) Mrs. T's use of a lawyer
• C) Mr. J's purchase of a share of General Motors stock
• D) All of these would be included.

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Definitions:

Consumer Sovereignty

The concept that consumers' preferences and choices dictate the production and consumption of goods and services in an economy.

Dollar Votes

A term used in economics to describe how consumers show their preferences and exert influence in the market by how they spend their money.

Dollar Votes

The concept that consumers "vote" for the products they prefer through the dollars they spend.

Consumer Sovereignty

The concept that consumers have the ultimate control over what goods and services are produced by choosing what to purchase with their money.