If a student receives a scholarship, what will be its treatment in GDP?
Answer and explanation
Correct answer: Not directly included because it is a transfer payment
A scholarship is generally a transfer payment because it is given without a direct exchange for a currently produced good or service. The receipt itself is therefore not counted as GDP expenditure or production. If the scholarship is later spent on education or other goods and services, the resulting current production may be recorded through that expenditure, but the transfer itself is excluded.
Frequently asked questions
What is the correct answer to this question?
Not directly included because it is a transfer payment
Why is this the correct answer?
A scholarship is generally a transfer payment because it is given without a direct exchange for a currently produced good or service. The receipt itself is therefore not counted as GDP expenditure or production. If the scholarship is later spent on education or other goods and services, the resulting current production may be recorded through that expenditure, but the transfer itself is excluded.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
Student feedback
Was this question useful?
👍 0 Helpful 👎 0 Not helpful
Yes 0% No 0%
0 responsesStudent Reviews
No published reviews yet.
