Why doesn’t adding Florida businesses’ total sales give a valid GDP total? » HSC U.S. Economy MCQ » MCQ Academy

U.S. Economy

Why doesn’t adding Florida businesses’ total sales give a valid GDP total?

Intermediate transactions would be counted repeatedly
GDP measures only tax receipts
GDP excludes every service
A state’s exports are always zero

Intermediate transactions would be counted repeatedly
GDP measures only tax receipts
GDP excludes every service
A state's exports are always zero

Note

Intermediate transactions would be counted repeatedly is correct. Regional GDP includes the value added by many industries, not a simple sum of their sales receipts.

Nominal and real GDP use different price concepts; never compare them as though identical.

Tags: Florida Economy, Florida Facts

Note

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