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    Question

    Which of the following is not included in the

    calculation of Gross Domestic Product (GDP)?
    A Value of final goods and services Correct Answer Incorrect Answer
    B Depreciation on capital assets Correct Answer Incorrect Answer
    C Intermediate goods used in production Correct Answer Incorrect Answer
    D Net indirect taxes Correct Answer Incorrect Answer
    E Private consumption expenditure Correct Answer Incorrect Answer

    Solution

    GDP measures the monetary value of all final goods and services produced within a country’s borders in a given period. Intermediate goods are excluded because their value is already embodied in final output; including them would cause double counting. GDP focuses on final use—consumption, investment, government spending, and net exports.

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