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Question : Which of the following is not a gross domestic product (GDP) component?

 

Option 1: Personal consumption expenditures

Option 2: Gross private domestic investment

Option 3: Net exports

Option 4: Government transfer payments


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 20th Jan, 2024

Correct Answer: Government transfer payments


Solution : The correct answer is (d) Government transfer payments

Government transfer payments are not considered a component of Gross Domestic Product (GDP). Transfer payments are payments made by the government to individuals or households for which no goods or services are exchanged. Examples of transfer payments include social security benefits, welfare payments, and unemployment benefits. These payments are considered transfers of income and do not represent current production or economic activity.

 

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