Question

Should values of the following items be included in GDP? (Comment briefly):

a. Haircuts

b. Used textbook

c. Restaurant tips

d. Meat sold at a farmer’s market

e. Home made food

f. French champagne

g. Bribes

h. Pension

i. Unemployment insurance

j. Computer

Answer 1

A.Yes if taken by a professional

B.No,becuse the fresh book was already included in some previous year GDP.

C.Yes because it is an economic transaction and is subject to income tax.

D.Yes if purchase is made for final consumption.

No if purchase is made as an intermediate good(sold at a restaurant)

E.No because no economic transaction is involved.

F.Yes included in imports.

G.No because it is illegal trade.

H.Pensions are included as part of government spending.

I.Yes

J.Yes if purchased for final consumption.(domestic use)

No,if purchased as an intermediate good.