Which item will be included in GDP?
Answer and explanation
Correct answer: Current-year wheat sold by a farmer in the market
Wheat produced during the current year and sold in the market is a current final output and its value is included in GDP, subject to avoiding double counting. A scholarship and pocket money are transfer payments rather than payments for current production. The resale of an old book does not represent current production; only any current selling service would be counted.
Frequently asked questions
What is the correct answer to this question?
Current-year wheat sold by a farmer in the market
Why is this the correct answer?
Wheat produced during the current year and sold in the market is a current final output and its value is included in GDP, subject to avoiding double counting. A scholarship and pocket money are transfer payments rather than payments for current production. The resale of an old book does not represent current production; only any current selling service would be counted.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
