Asked by Tyler Evans on May 11, 2024

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Verified

Military goods purchased by the government are

A) not included in GDP.
B) measured in GDP by their cost of production.
C) measured in GDP by how much their goods add to the economic well-being.
D) measured in GDP only if the government sells these goods to another country.

Military Goods

Products and services specifically designed, manufactured, and supplied for use by armed forces.

  • Distinguish between the types of investments that are accounted for in and disregarded from the Gross Domestic Product.
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Verified Answer

AM
April MartinezMay 12, 2024
Final Answer :
B
Explanation :
Military goods purchased by the government are included in GDP through their cost of production because they are considered a final good or service that adds value to the economy. However, they are not included in GDP through their economic well-being because they do not provide a direct benefit to consumers in the market. Additionally, the government selling the goods to another country does not determine their inclusion in GDP.