BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which is NOT a component of expenditure based GDP?
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S = Surplus
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C = Consumption
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I = Investment of new physical capital
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G = Government expenditure
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X = Exports
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Explanation:
Detailed explanation-1: -For example, while GDP includes monetary spending by private and government sectors, it does not consider work-life balance or the quality of interpersonal relationships in a given country.
Detailed explanation-2: -When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports.
Detailed explanation-3: -Transfer payments are not a component of the GDP.
Detailed explanation-4: -According to the 2008 SNA, it is the measure of the surplus accruing from production before deducting property income, e.g., land rent and interest. Operating surplus is a component of value added and GDP.
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