Which of the following is NOT a component of Gross Domestic Product (GDP) calculated by the expenditure method? MCQ with Answer and Explanation

Which of the following is NOT a component of Gross Domestic Product (GDP) calculated by the expenditure method?
A. Net factor income from abroad
B. Gross fixed capital formation
C. Private final consumption expenditure
D. Government final consumption expenditure
Answer: Option A
Solution (By JKSSB Mock Tests)
GDP by expenditure method includes private final consumption expenditure, government final consumption expenditure, gross fixed capital formation, and net exports. Net factor income from abroad is used to convert GDP into GNP, not a component of GDP itself.

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Practice More Economy Set 1 Questions

Question #1
Revenue deficit is calculated as:
A. revenue receipts minus revenue expenditure
B. revenue expenditure minus revenue receipts
C. fiscal deficit minus primary deficit
D. total expenditure minus total receipts

Correct Answer: Option B


Explanation:
Revenue deficit is revenue expenditure minus revenue receipts.

This question belongs to: Economy GK Economy Set 1
Question #2
The IS curve shows combinations of income and interest rate where:
A. foreign exchange market is in equilibrium
B. labour market is in equilibrium
C. goods market is in equilibrium
D. money market is in equilibrium

Correct Answer: Option C


Explanation:
The IS curve shows equilibrium in the goods market.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Merchandise Exports from India Scheme' was replaced by which scheme?
A. RoDTEP
B. EPCG
C. Advance Authorization
D. SEIS

Correct Answer: Option A


Explanation:
MEIS was replaced by the Remission of Duties and Taxes on Exported Products scheme.

This question belongs to: Economy GK Economy Set 1