Which of the following activities is not counted in our calculations of GDP?
A) the purchase of a hammer for household repairs
B) the labor services of a volunteer group building a home for a poor widow
C) the purchase of new, domestically-produced tires for your old foreign car
D) a haircut received and paid for at a beauty salon

Question

Quizplus · Accepted Answer

GDP only includes market transactions, which involve the exchange of goods or services for money. The volunteer work described in option B does not involve a market transaction and therefore is not included in GDP calculations. Options A, C, and D all involve market transactions and would be included in GDP calculations.

Which of the Following Activities Is Not Counted in Our