The value of which of the following is counted in the United States gross domestic product? A Clean air B Child care a father provides for his child C An automobile produced in Sweden by a United States firm D A car produced in the United States and sold in Europe E Medical services not provided due to preventative health care

## Step 1<br />Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced within a country's borders over a specific time period. It includes all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade (exports are added, imports are subtracted).<br /><br />## Step 2<br />Option A, "Clean air," is not directly counted in GDP because it is a public good that is not traded in markets. Its value is often estimated indirectly through the costs of cleaning technologies or the value of health improvements.<br /><br />## Step 3<br />Option B, "Child care a father provides for his child," is not counted in GDP because it is a non-market activity. GDP only includes market transactions.<br /><br />## Step 4<br />Option C, "An automobile produced in Sweden by a United States firm," is not counted in the U.S. GDP because the production takes place outside the U.S.<br /><br />## Step 5<br />Option D, "A car produced in the United States and sold in Europe," is counted in the U.S. GDP because the production occurs within the U.S., regardless of where the product is sold.<br /><br />## Step 6<br />Option E, "Medical services not provided due to preventative health care," is not directly counted in GDP. GDP measures the value of services provided, not the value of services not provided. Preventative health care, by its nature, avoids the need for medical services, so its value is not captured in GDP.