Question : Which of the following is included in the calculation of GDP?
Option 1: Intermediate goods
Option 2: Final goods and services
Option 3: Secondhand goods
Option 4: Transfer payments
Correct Answer: Final goods and services
Solution : The correct answer is b) Final goods and services.
Gross Domestic Product (GDP) is a measure of the total value of all final goods and services produced within a country's borders during a specific period, typically a year. In the calculation of GDP, intermediate goods and services are not included. Only the final goods and services that are consumed by end-users or used for investment are counted.
To avoid double-counting, intermediate goods, which are used as inputs in the production process, are not directly included in GDP. Only the value of the final goods and services, which represent the end result of production, are taken into account.
Question : Which of the following is not included in the calculation of GDP?
Option 1: Government purchases of goods and services
Option 2: Consumer spending on durable goods
Option 3: Net exports
Option 1: Exports
Option 2: Imports
Option 3: Government purchases of goods and services
Question : Which of the following is NOT included in the calculation of GDP?
Option 2: Final goods
Option 3: Value of exports
Option 4: Value of imports
Question : Which of the following is included in the gross domestic product (GDP) calculation?
Option 1: The value of intermediate goods
Option 2: The value of final goods and services
Option 3: The value of second-hand goods
Option 4: The value of capital gains
Question : Which of the following are the precautions of calculating national income through expenditure method?
Option 1: Expenditure on intermediate goods will not be included.
Option 2: Transfer payments are not included.
Option 3: Purchase of secondhand goods will not be included
Option 4: All of the above.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile