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. Government final consumption expenditure

C. Value of intermediate goods

D. Value of final goods produced domestically

Answer: Option C

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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Practice More Economy Set 1 Questions

Question #1

Which of the following is an example of a flow variable in economics?

A. Money supply at a point in time

B. National income

C. Capital stock

D. National wealth

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Correct Answer: Option B

Explanation:
National income is a flow variable as it is measured over a period of time. Wealth, capital stock and money supply at a point in time are stock variables.

This question belongs to: Economy GK Economy Set 1

Question #2

The 'Annual Information Statement' in income tax is:

A. a bank statement

B. a statement of taxes only

C. a statement of foreign travel

D. a statement of specified financial transactions

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Correct Answer: Option D

Explanation:
AIS is a statement of specified financial transactions.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'National Investment Fund' was created with the proceeds of:

A. borrowings

B. foreign aid

C. taxes

D. disinvestment of central public sector enterprises

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Correct Answer: Option D

Explanation:
National Investment Fund was created with disinvestment proceeds.

This question belongs to: Economy GK Economy Set 1

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