Pierre runs a French restaurant. He goes to the grocery store and buys a $5 container of smoked Mediterranean sea salt to be used in the kitchen at the restaurant, and a pound of Velveeta "cheese product" for $3 for home use. He then goes to a consignment store and pays $20 for a gently used apron and toque (that tall white hat you think of when you think of a traditional chef’s uniform). How much of this is counted in this year’s GDP?

Explanation: The GDP measures only the final production and not the so-called intermediate production, to avoid double counting. When referring to final goods and services, it means that those goods made in the period for use as raw material for the manufacture of other goods and services should not be taken into account. Therefore, those goods produced in the period that, by their very nature, are not going to be integrated into any other production process, as well as those other goods that have not been integrated into the process, are included in the final goods and services productive at the end of the year although they were destined for it.

Therefore, it only counts the pound of Velveeta "cheese product" for $ 3 since it is for domestic use and not for producing another good or service.