Question : Which of the following is included in the calculation of GDP?
Option 1: Payments for government transfer programs
Option 2: Consumer spending on non-durable goods
Option 3: Income earned by foreign nationals in the country
Option 4: Capital gains
Correct Answer: Consumer spending on non-durable goods
Solution : The correct answer is (b) Consumer spending on non-durable goods
Consumer spending on non-durable goods, such as food, clothing, and other consumable items, is included in the calculation of Gross Domestic Product (GDP). GDP measures the total value of goods and services produced within a country's borders in a specific time period. It represents the sum of consumer spending, investment, government spending, and net exports.
Option 2: Consumer spending on durable goods
Option 1: Investment spending on new factories
Option 2: Payments for government transfer programs
Option 3: Consumer spending on used cars
Option 4: Income earned by foreign nationals in the country
Option 1: Investment spending on stocks and bonds
Option 2: Government transfer payments
Option 3: Consumer spending
Option 1: Net exports
Option 2: Government purchases of goods and services
Option 3: Consumer spending on non-durable goods
Question : Which of the following is not included in the calculation of GDP?
Option 1: Government purchases of goods and services
Option 3: Net exports
Option 4: Transfer payments
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