Economic Awareness - Sectors of Indian Economy
Which of the following transactions is excluded from GDP calculation by the expenditure method?
Which of the following transactions is excluded from GDP calculation by the expenditure method?
easy Q13 of 15
Step-by-Step Solution
Step 1: Identify excluded transactions
Transfer payments are excluded from GDP as they do not represent payment for goods or services.Step 2: Analyze options
Purchases of new goods, government spending on goods, and exports are included; transfer payments like pensions are excluded.Final Answer:
Transfer payment of old-age pension → Option BQuick Check:
Transfer payments excluded from GDP = pensions ✅
Quick Trick: Exclude transfer payments when calculating GDP by expenditure.
Common Mistakes:
- Including transfer payments as government expenditure.
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