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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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