Which of the following transactions would be included in gross domestic products (GDP)?


gross domestic products (GDP)
the following transactions would be included in gross domestic products (GDP)

To answer the above question let’s look at the meaning of gross domestic product. (GDP)

What is gross domestic product (GDP)?

Gross domestic product (GDP) in economics is the total value and price of all sum goods and services produced within a country or nation at particular given period. This is often used as way to measure the economic performers of a country. A country or nation with a high gross domestic growth rate means that such country is growing faster than other country within it level and is there considered to be doing great in economic performers. Gross domestic product can be affected by a number of economic factors, such as changes in government spending, trade agreement, natural disasters, and population growth. There are two major ways to calculate gross domestic product; the production approach and the income approach. The production approach will add up the total value of all final goods and service produced in a particular country or nation. While the income approach calculates gross domestic product by adding up all the income earned by everyone in the country both imports and export. This includes wages, interest, and rent.

To answer the question which of the following transaction would be include in GDP? The following option is given below to help understand the answer clearly:



Which of the following transaction would be included in GDP?


a.      Mr. Donald donates $600 to his local town junior high school college scholarship support

b.      Ms. John pays $60 for a used oven from a neighbor

c.       Ms. Sam pays $6,000 to buy 600 shares of Google Microsoft stock

d.      Mr. mike pays $600 to repair his car


The answer here is (c) Mrs. Sam pays $6,000 to buy 600 shares of Google Microsoft stock.

Another example is:


Which of the following transaction would be calculated in gross domestic product? (GDP)


a.      The money you collect for babies day care services

b.      Illegal sales of drugs

c.       The sale of cocoa to the coffee producer

d.      The sale of vegetables in the local market

e.      The eBay resale of cloths you received from your uncle for the holidays.


The answer here is (a). The money you collected for babies’ day care services.


Which of the following would be included the GDP?


a.      Mike sold his bicycle

b.      Joyce downloaded a software illegally from her device

c.       Dan won the nation lottery game

d.      Sunny bought a brand new laptop


The answer here is (d) sunny bought a brand new laptop.

(a)   Is wrong because it was already captured in the GDP as it is a resold car that was bought by the person who bought the car.

(b)   Is also incorrect because illegal downloads is not calculated as to be part of GDP and also not generating any revenue for the owners of those software.

(c)    Is also wrong because the production output has nothing to do with winning a lottery and do not contribute to the national output.

(d)   Is the correct answer because buying a brand new laptop is an item of final consumption expenditure and is calculated and included in the gross domestic product. (GDP)



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