Macroeconomics: National Income Accounting · Class 12 · CBSE · Commerce Economics
Which of the following transactions is included in the domestic product of the current year?
Practice question from Macroeconomics: National Income Accounting (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-A628C5
Which of the following transactions is included in the domestic product of the current year?
- A.Purchase of shares of a company in the stock market
- B.Sale of a second-hand car between two households
- C.Government payment of an old-age pension
- D.Payment made for current legal services by a householdCorrect answer
Solution
Payment for current legal services is a payment for newly produced final services and is included in domestic product. Share purchases, transfer payments, and second-hand goods do not represent current production, although a broker's current service fee would be included.
More from Macroeconomics: National Income Accounting
- An economy has a GDP at market price of ₹1,200 crore, depreciation of ₹100 crore, indirect taxes of ₹80 crore, and subsidies of ₹20 crore.…
- A country's nominal GDP is ₹660 crore and its GDP deflator is 120, with the base year deflator equal to 100. What is the real GDP at base-y…
- Why is GDP not considered a complete measure of the economic welfare of a country?
- In an economy, net factor income from abroad is positive. Compared with GDP, which statement is necessarily true, assuming both are measure…
Practise more Economics
Sign up free for adaptive practice on this chapter, with instant feedback and hints on every question.
Start practising freeFree to start · No credit card needed