Why is the fee paid for a coaching class included in GDP?
Answer and explanation
Correct answer: Because it is a current-year paid educational service
A coaching class provides an educational service during the current accounting period. When students pay a fee, it is a market transaction in which income is earned by the service provider and expenditure is incurred by households. The value of this currently produced service is therefore included in GDP. It is not a transfer payment, subsidy, or resale of an old asset.
Frequently asked questions
What is the correct answer to this question?
Because it is a current-year paid educational service
Why is this the correct answer?
A coaching class provides an educational service during the current accounting period. When students pay a fee, it is a market transaction in which income is earned by the service provider and expenditure is incurred by households. The value of this currently produced service is therefore included in GDP. It is not a transfer payment, subsidy, or resale of an old asset.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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