Praxis 5511 Practice Test Practice Question
Which of the following will increase the gross domestic product (GDP) of Country X?
Correct Answer: A
Rationale: Option A, an automobile produced in Country X, directly contributes to GDP as it reflects the value of goods produced within the country during the current period.
Option B, a can of soup purchased in a previous year, does not impact current GDP since it was accounted for in the previous year's economic output.
Option C, Social Security benefits, are transfers and do not represent production of goods or services, thus they do not contribute to GDP.
Option D, consumption of homegrown vegetables, typically does not enter GDP calculations unless sold in a market, as it reflects non-market production.
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