Question

Question 7 (1 point) (02.02 LC) Economists argue that GDP is underestimated as a result of which of the following? O a The sale of second-hand or used goods is not counted in current GDP. Transfer payments are not counted in current GDP. The sale of equities or shares of stock are not counted in current GDP. Home production of goods and services is not counted in GDP. GDP does not include a measure of income inequality. O b O c Od O e

Answer 1

Items not counted in GDP include (option a) the sale of second-hand goods, transfer payments, sale of equities, and home production.

Step-by-step explanation:

The items that are not counted into GDP include (option a) the sale of second-hand or used goods, transfer payments, the sale of equities or shares of stock, and home production of goods and services. Second-hand or used goods are not included in GDP because they were produced in a previous year and are part of that year's GDP. Transfer payments, such as government payments to individuals, are not included because they do not represent production. The sale of equities or shares of stock are not counted in GDP because they are financial transactions that do not directly contribute to production. Finally, home production of goods and services is not counted in GDP because these goods are not sold in the marketplace.