Which of the Following Activities Would Be Included in GDP

question 142

Multiple Choice

Which of the following activities would be included in GDP?

• A) You hire a cleaning service at $40 to clean your house.
• B) Your roommate pays you $40 to clean the house.
• C) Your parents send you $40 to hire a house cleaner, and you clean the house and keep the $40 yourself.
• D) All of these would be included in GDP, since there was a monetary exchange.

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Definitions:

Optimal Output

The level of production that results in the highest possible profit for a firm, determined by the point where marginal cost equals marginal revenue.

Short-Run Costs

Expenses that vary directly with the level of output in the short term, where at least one input is fixed.

Economic Profit

A firm's total revenue minus its explicit and implicit costs, representing the additional benefit above the normal rate of return.

Maximize Profits

The process or strategy employed by businesses to achieve the highest possible profit margin.