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Gross domestic product includes which of the following measures?
Choice 'c' is correct. Gross domestic product (GDP) is the total dollar (monetary) value of all new final products and services produced with the economy in a given time perioD. The emphasis is on the final goods and services.
Choice 'a' is incorrect. The size of a population that must share a given output within one year is not a part of the GDP calculation.
Choice 'b' is incorrect. The negative (or positive) externalities of the production process of a nation within one year are not a part of the GDP calculation. In economics, externalities are the effects that the acts of consumers or producers have on each other. Externalities range from technological changes to changes in the range of options available to consumers. Externalities may also be regarded as the unanticipated side effects of courses of action.
Choice 'd' is incorrect. The total monetary value of goods and services, including barter transactions, is not a part of the GDP calculation. GDP includes only monetary value, not barter value.