Questions: Which of the following would not be counted in the calculation of GDP? Select all that apply buying a brand new car washing your clothes purchasing a puppy from a farmer with a reputation for not paying taxes government spending on social security paying for a flight to Las Vegas paying for a chef to cook your meals

Which of the following would not be counted in the calculation of GDP? Select all that apply
buying a brand new car
washing your clothes
purchasing a puppy from a farmer with a reputation for not paying taxes
government spending on social security
paying for a flight to Las Vegas
paying for a chef to cook your meals
Transcript text: Which of the following would not be counted in the calculation of GDP? Select all that apply buying a brand new car washing your clothes purchasing a puppy from a farmer with a reputation for not paying taxes government spending on social security paying for a flight to Las Vegas paying for a chef to cook your meals
failed

Solution

failed
failed

The answer is: washing your clothes, purchasing a puppy from a farmer with a reputation for not paying taxes, government spending on social security.

Explanation for each option:

  1. Buying a brand new car: This would be counted in GDP as it is a final good purchased by a consumer.

  2. Washing your clothes: This would not be counted in GDP because it is a non-market activity (a household chore) that does not involve a market transaction.

  3. Purchasing a puppy from a farmer with a reputation for not paying taxes: This would not be counted in GDP because it is part of the informal economy, which is not typically captured in official GDP statistics.

  4. Government spending on social security: This would not be counted in GDP because social security payments are transfer payments, not payments for goods or services.

  5. Paying for a flight to Las Vegas: This would be counted in GDP as it is a service purchased by a consumer.

  6. Paying for a chef to cook your meals: This would be counted in GDP as it is a service purchased by a consumer.

Summary: The items that would not be counted in the calculation of GDP are washing your clothes, purchasing a puppy from a farmer with a reputation for not paying taxes, and government spending on social security.

Was this solution helpful?
failed
Unhelpful
failed
Helpful