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.
