In the context of national income accounting, which of the following is excluded from GDP? MCQ with Answer and Explanation

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In the context of national income accounting, which of the following is excluded from GDP?

A. Imputed rent of owner-occupied houses

B. Value of intermediate goods

C. Value of final goods produced domestically

D. Government final consumption expenditure

Answer: Option B

Solution (By JKSSB Mock Tests)

Intermediate goods are excluded from GDP to avoid double counting. Only the value of final goods and services is included.

This question belongs to: Economy GK Economy Set 1

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The 'injection' into the circular flow in a three-sector economy includes:

A. saving

B. taxes

C. imports

D. government expenditure and investment

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Correct Answer: Option D

Explanation:
In a three-sector economy, injections include investment and government expenditure.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Employees' Provident Fund' contribution is deposited by:

A. government only

B. both employer and employee

C. employee only

D. employer only

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Correct Answer: Option B

Explanation:
EPF contribution is made by both employer and employee.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is NOT a function of the World Bank?

A. Providing short-term balance of payments support

B. Providing long-term loans for development projects

C. Poverty reduction initiatives

D. Technical assistance for development

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Correct Answer: Option A

Explanation:
Short-term balance of payments support is primarily the function of the IMF. The World Bank focuses on long-term development finance and poverty reduction.

This question belongs to: Economy GK Economy Set 1

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