Question

Which of the following would NOT be included in this year's GDP for the United States?

		A U.S. business spends $100 million to build a new factory in South Carolina.
		The U.S government distributes $10 million in social security payments.
		U.S. consumers spend $40 million on domestically produced medical services.
		A foreign country purchases $2 billion worth of U.S exports

Is the answer "D"?

Answer 1

Firstly let us clear with the definition of GDP.

GDP is the final production of goods and services within the boundary of a country in a financial year it includes all the final goods and services .

Also the consumption ,government spending ,investment as well as export and import.

In Option D there is export by the US so it will come under GDP.

In option C ,the consumption is been given of the US consumers which is also counted in GDP.

the US business spends hundred million dollar which means it is also contributing in the GDP.

but option B which tells that government is doing social security is doing some good deeds and distributes $10mn but it is not any type of production.

so it will not counted under GDP.

Answer is optionB