Question

When measuring GDP, economists don't include the value of the used furniture bought and sold because?

1) It is difficult to accurately measure the value of used furniture
2) Used furniture is not considered a part of the formal economy
3) Including the value of used furniture would lead to double counting
4) Used furniture does not contribute to economic growth

Answer 1

Used furniture is not included in GDP measurements because it was produced in a previous year and would lead to double counting. Additionally, used furniture does not contribute to economic growth.

Step-by-step explanation:

When measuring GDP, used furniture is not included because it was produced in a previous year and is part of that year's GDP. Including the value of used furniture would lead to double counting, which would overstate the size of the economy. Additionally, used furniture does not contribute to economic growth as it is not part of the formal economy.