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Which among the following is included in the gross domestic product?
Sale of used goods
Bartered goods and services
Sales of final goods
Transfer payments
- Option 1: Sale of used goods
- Used goods aren't counted in GDP. GDP measures the value of new production, not resale.
- They were included in GDP when first sold as new goods.
- Option 2: Bartered goods and services
- Often excluded from GDP as they are hard to track.
- However, if reported, their estimated market value can be included.
- Option 3: Sales of final goods
- Final goods are included as they represent new production.
- They are end-products consumed by the final user, not intermediate products.
- Option 4: Transfer payments
- Not included in GDP since they don’t reflect production of goods/services.
- Examples include social security and unemployment benefits.
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