4. Problems and Applications Q4 As the chapter states, GDP does not include the value of used goods that are resold. True or False: Including the value of used goods that are resold would make GDP a less informative measure of economic well-being.
GDP encompasses the products and services that are manufactured in the current year. The value of the products that are resold does not include it. The explanation is that in previous years they have already been counted. It would overestimate the GDP and would not reflect true economic well-being by including such transactions.
