CSEET · Economic and Business Environment · National Income Accounting and Related Concepts
Which of the following transactions would be included in India's GDP for the current year?
The broker's commission is included because it pays for a service produced in the current year. Resale of second-hand goods, trading old shares and pensions are transfers of existing assets or income and do not represent current output.
- ASale of a second-hand car by one household to another
- BPension received by a retired government employee
- CCommission earned by a broker on the sale of that second-hand carCorrect
- DPurchase of old shares of a company on the stock exchange
Explanation
GDP counts only current production of goods and services. The broker's commission is payment for a current service, so it is included. The second-hand car sale, share purchase and pension are transfers or exchanges of existing assets, not current production.
Did you get it right without looking?
One question tells you little. A timed set on National Income Accounting and Related Concepts shows your real accuracy, how long you take and where you lose marks.
More National Income Accounting and Related Concepts questions
- A steel company in India sells steel worth ₹500 crore to an automobile maker, which uses it to produce cars sold to consumers for ₹900 crore…
- The circular flow of income shows that, for an economy in a given period, the value of national output, national income and national expendi…
- Which of the following is a recognised use of national income statistics?
- Which statement correctly distinguishes nominal GDP from real GDP?
- Why does the production of goods in the underground or black economy limit the accuracy of national income estimates?
- In a four-sector circular flow model, which pair correctly lists an injection and a leakage associated with the foreign sector?