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 4: Transfer payments
Answer (1)
22nd Jan, 2024
Correct Answer: Transfer payments
Solution : The correct answer is d) Transfer payments.
Transfer payments, such as welfare benefits, subsidies, or grants, are not included in the calculation of Gross Domestic Product (GDP). Transfer payments are transfers of income from one group to another and do not represent current production or the creation of goods and services.
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