GDP would include all of the following except:

a. income earned for engineering services.

b. income earned by an airline pilot.

c. tips earned but not reported by a waitress at an upscale restaurant.

d. the purchase of a new automobile by a school.

e. the purchase of a new home by a retired couple.

Question

Business

Gideon Keller

1 September, 18:58

GDP would include all of the following except:

a. income earned for engineering services.

b. income earned by an airline pilot.

c. tips earned but not reported by a waitress at an upscale restaurant.

d. the purchase of a new automobile by a school.

e. the purchase of a new home by a retired couple.

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Answers (1)

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Drew Ellis · Answer 1

The correct answer is the option C: tips earned but not reported by a waitress at an upscale restaurant.

Explanation:

To begin with, the Gross Domestic Product or GDP comprehends in economic terms the monetary measure of the market value of all the final goods that an economy produces in a certain amount of time. Moreover, this measure is formed by different variables that are the consumption, investment, government spending and net exports. And in that scenario, all the of the cases presented will be included in the GDP of the economy except the tips that are not reported due to the fact that those earnings will figured as out of the circular flow of economy as it will represent a leak, a filtration of the system.

GDP would include all of the following except:a. income earned for engineering services.b. income earned by an airline pilot.c. tips earned but not reported by a waitress at an upscale restaurant.d. the purchase of a new automobile by a school.e. the purchase of a new home by a retired couple.