Which of the following is NOT included in the calculation of GDP?

A the new textbook you purchase
B a cup of coffee from a vendor
C your granny's monthly Social Security payment
D the wages you pay to the employee who cleans your house

Respuesta :

Answer:

The correct answer is option C.your granny's monthly social security payment

Explanation:

Judging from the formula used in  computing the GDP,option A relates to household consumption as the new textbook is not for resale.

Option B also points to household consumption expenditure,as the cup of coffee is for household usage.

Option C does not have a place in the formula as it is not a payment for a good or service.It is a  payment that cannot be tied to any transaction.Hence,option C is your best bet.

Paying wages means parting with money in return for value-adding services,so it features in the GDP computation.