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Which transaction will be included in current-year NDP?

Answer and explanation

Correct answer: Broker’s service provided during the sale of an old house

NDP measures the value of currently produced final goods and services within the domestic territory, after deducting depreciation. The old house itself was produced in an earlier year, and share repurchase is a financial transaction rather than current production. A broker’s service supplied in the current year is a newly produced market service, so its fee is included in current-year NDP.

Related tags

EconomicsCurrent ProductionBrokerageNdpNational Income And Related AggregatesGdp And WelfareClass 11 Mcq

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