Which of the following is NOT included in GDP?

The correct choice indicates that consumer spending on stocks and bonds is not included in GDP calculations. GDP, or Gross Domestic Product, measures the total monetary value of all finished goods and services produced within a country's borders during a specific time period. It focuses on the flow of goods and services in the economy.

Consumer spending on stocks and bonds represents financial transactions rather than the purchase of goods and services. These transactions are considered transfers of existing assets rather than new production. In contrast, business investments, government spending, and net exports all represent forms of expenditure that directly contribute to the production of goods and services, thus being key components of GDP.

Business investments refer to expenditures that firms make to acquire or upgrade physical assets, contributing to future productive capacity. Government spending includes expenditures made by the government for public services, infrastructure, and goods that assist in functioning the economy. Net exports, the difference between a country's exports and imports, reflect the economic activity related to international trade.

This distinction is vital for understanding what is included in GDP and why certain financial transactions, such as buying stocks and bonds, do not contribute to a nation's economic output in the same way.