Which of the following is included in the calculation of GDP?

• A. Transfer payments such as social security
• B. The market value of final goods and services produced within a country during a given period
• C. The value of intermediate goods used in production
• D. The resale of used goods

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definition of GDP. Gross Domestic Product (GDP) measures the total market value of all final goods and services produced within a country during a specific period.
2. Step 2: Identify what is included in GDP. Only the market value of final goods and services produced in the current period is counted to avoid double counting.
3. Step 3: Recognize that transfer payments, such as social security, are not included in GDP because they are redistributions of income, not payments for goods or services produced.
4. Step 4: Understand that intermediate goods are not included separately in GDP because their value is already embedded in the final goods to prevent double counting.
5. Step 5: Note that the resale of used goods is excluded from GDP since these goods were counted when they were first sold as new products.