Which of the following is not a component of gross domestic product?

Question

** Net exports.

      ** Government purchases.

     ** Purchases by consumers of finished goods.

      ** Purchases by firms of goods used to produce others.

      ** All of the above are part of GDP

I chose all of above are part of GDP***

** Are the available answers to this question

Answer 1

i think its purchases by firms of goods used to produce others. cos if both the purchases of finished goods, and purchases by firms of goods used to produce others( others as in the former) that would result in double counting.

Answer 2

you guessed correctly all of the above are part of GDP

GDP=C+I+G+NX

C= consumption

I= Investment by firms (since firms buy goods to produce others that means they are purchasing capital goods so it is investment)

G= Government spending

NX= Net export

so Bam , all included

Answer 3

Whatever is purchased, by whomever, has to be a purchase made within that country of that country's goods/products in order for it to be defined as GDP.

I think.

That is, I don't think supplies bought from Japan to make products in the USA would be considered part of the GDP.

Gov't purchases, such as foreign investments, would also not be considered part of the GDP.

I think what you chose is fine - (all are part of GDP) though I would argue that the choices given are poorly worded and just ambiguous enough to be misconstrued.

There! Good luck with the rest of your homework!