Australian Gross Domestic Product (GDP) would exclude which of the following?[Fill in the blank]

Question

BlackTom AI · Accepted Answer

To determine which item Australian GDP would exclude, we need to recall what GDP measures: the total market value of all final goods and services produced within a country during a period. Now, let's analyze each option in turn.

Option a: A used car purchased from another Australian household. This is a second-hand transfer of ownership and not a newly produced good or service. Since GDP only counts current production, and a used car was already counted when it was first sold as a new car, this transaction does not add to current GDP. Therefore, it would be excluded.

Option b: Wages paid to Australian workers in a local factory. Wages are part of the compensation for productive efforts and contribute to the income approach to GDP. These wages reflect current production activity in the economy and are included in GDP as part of GDP by income (labor income). So this is included, not excluded.

Option c: A new apartment building constructed in Sydney. A new building represents newly produced housing services and structures, contributing directly to GDP through investment in construction. This is included in GDP as gross domestic construction investment (part of GDP). Therefore, this is included, not excluded.

Option d: A consumer purchases the cheese from Coles supermarket. This is a purchase of a newly produced good (cheese) from a retailer, representing final consumption expenditure. It reflects current production and is counted in GDP under consumption. Hence, this is included, not excluded.

In summary, only the used car trade in a second-hand market does not correspond to current domestic production, making it the item that GDP would exclude. The other options describe components of current production and income that GDP captures.

Australian Gross Domestic Product (GDP) would exclude which of the following?[Fill in the blank]

View Explanation

Log in for full answers

Similar Questions

A Texas household receives a Social Security check for $1500, which it uses to purchase a $40 pair of shoes made in Thailand by a Thai firm, a $1240 television made by a Korean firm in Korea, and $220 on groceries from a local store. As a result, U.S. GDP

U.S. GDP excludes the production of most illegal goods.

GDP understates the amount of economic production in the United States because it excludes

GDP tends to underestimate the productive activity in the economy because it excludes the value of output from

An Italian restaurant purchases an orange for $2 to make fresh orange juice, which it then sells for $5. Meanwhile, Alison buys an orange for $1 at wholesale for her grocery store and resells it to a customer for $3. What is the total contribution of these two transactions to GDP?[Fill in the blank]

"Suppose a new computer is invented that costs one-quarter of existing computers and performs as well. Now, when GDP is calculated, production of the same number of computers creates only one-quarter as much dollar output - GDP falls!"[Fill in the blank]

Two equivalent ways to view GDP are as the

In a country with unusually high tax rates, one might expect that ________.

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler