Which of the following items are included in official U.S. GDP statistics? Select one or more answers from the choices shown.

a. Revenue generated by illegal marijuana growers.

b. money spent to clean up a toxic waste site in Ohio.

c. Revenue generated by legal medical marijuana sales in California.

d. The dollar value of the annoyance felt by local citizens living near a noisy airport in Georgia.

e. Andre paying Ted for a haircut in Chicago.

f. Emily and Aliya trading an hour of dance lessons for a haircut in Dallas.

The illegal marijuana growers are a part of an underground economy or hidden economy where it is impossible to calculate the output production appropriately. Thus, such activities or market transactions are not counted in, and therefore, the Revenue generated by them is not a part of the official US GDP.

The toxic waste created by a factory is an external cost caused due to the presence of negative externality of the production activity. It is not deducted from the total output value.However, the money spent to clean this waste is an economic transaction that creates income for the people/firm doing the work, and hence, it is counted in GDP calculation.

Revenue generated by legal medical marijuana sales results from market production of tradeable output that is observable and accounted for, and therefore, it counted in the official US GDP.

The dollar value of the annoyance is not counted in the official US GDP as it is a social cost that is external to the market. It affects well-being and is a negative externality effect that is not included while calculating the cost of output.

Andre’s payment for a haircut to Ted is a monetary transaction for a market service. The service of a hair- cut receives an income in exchange. Thus, it is included in the official US GDP.

When Emily and Aliya traded dance lessons for a haircut, it resulted in a payment of service in exchange for service. This is treated as unpaid work as there is no monetary transaction. Hence, this will not be counted in the official US GDP.