Question : Which of the following is included in the calculation of GDP?
Option 1: Transfer payments
Option 2: Capital gains
Option 3: Social security benefits
Option 4: Investment spending
Correct Answer: Investment spending
Solution : The correct answer is d) Investment spending.
Gross Domestic Product (GDP) is a measure of the total value of all goods and services produced within a country's borders during a specific time period. It is a comprehensive measure of economic activity within an economy.
Investment spending, which includes business investment in machinery, equipment, structures, and inventory, is indeed included in the calculation of GDP. Investment spending represents spending on the creation of new capital goods and contributes to the overall economic output.
Option 1: Payments for government transfer programs
Option 2: Consumer spending on durable goods
Option 3: Income earned by foreign nationals in the country
Option 4: Capital gains
Option 1: Investment spending on stocks and bonds
Option 2: Government transfer payments
Option 3: Consumer spending
Option 4: Income earned by foreign nationals in the country
Option 2: Consumer spending on non-durable goods
Option 1: Investment spending on new factories
Option 2: Payments for government transfer programs
Option 3: Consumer spending on used cars
Question : Which of the following is not included in the calculation of national income?
Option 1: Rental income
Option 2: Interest income
Option 3: Capital gains
Option 4: Transfer payments
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile