10. Problems and Applications Q10 Goods and services that are not sold in markets, such as food produced and consumed at home, are generally not included in GDP. True or False: As a result, you would expect that GDP per person in India and the United States will differ by more than their actual comparative economic well-being.

True

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Items not included in the calculation off GDP includes:

services not rendered to oneself

Activities not reported to the government

illegal activities

sale or purchase of used products

sale or purchase of intermediate products

A lot of goods produced in India aren't sold in the market when compared with the US, this would lead to the GDP of India been lower than the GDP of US.

one of the appeals of a sole proprietorship is that business expenses are kept separate from your personal income tax return