Which of the following items contribute(s) to an increase in real GDP?

(i) The cost of cleanup after a hurricane hits Florida
(ii) The market value of burglar alarms purchased to reduce crime
(iii) The additional health care costs associated with smoking
(iv) The production of a nuclear bomb

To determine which of the following items contribute to an increase in real GDP, we need to understand what real GDP represents. Real GDP, or gross domestic product, is a measure of the total value of all finished goods and services produced within a country during a specific period, adjusted for inflation.

Now, let's analyze each of the items provided:

(i) The cost of cleanup after a hurricane hits Florida:
While the cost of cleanup after a hurricane may involve significant expenditures, it does not directly contribute to the production of goods or services that are included in the calculation of real GDP. Instead, it represents expenses incurred due to a natural disaster. Therefore, it does not contribute to an increase in real GDP.

(ii) The market value of burglar alarms purchased to reduce crime:
The market value of burglar alarms represents the production and sale of a physical product designed to reduce crime. Since it involves the creation of a tangible product, purchasing burglar alarms can contribute to an increase in real GDP. Consequently, this item does contribute to an increase in real GDP.

(iii) The additional health care costs associated with smoking:
The additional health care costs associated with smoking are expenditures related to healthcare services required by individuals due to their smoking habits. Although these costs contribute to overall spending within the economy, they are considered "intermediate consumption" and are not counted separately in the GDP calculation. Therefore, they do not directly contribute to an increase in real GDP.

(iv) The production of a nuclear bomb:
The production of a nuclear bomb involves the creation of a weapon that is not utilized for the production of goods or services for consumption. This item does not contribute positively to the well-being or productivity of society, and therefore, it does not contribute to an increase in real GDP.

In summary, only item (ii) - the market value of burglar alarms purchased to reduce crime - contributes to an increase in real GDP. The other items, such as the cost of hurricane cleanup, additional health care costs due to smoking, and the production of a nuclear bomb, do not directly contribute to real GDP growth.