ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Intermediate goods and services, which are used in the production of final goods and services, are not included in the expenditure approach to GDP because expenditures on intermediate goods and services are included in the market value of expenditures made on final goods and services.

Detailed explanation-2: -Here is a list of items that are not included in the GDP: Sales of goods that were produced outside our domestic borders. Sales of used goods. Illegal sales of goods and services (which we call the black market)

Detailed explanation-3: -The expenditure method of calculating national income or gross domestic product takes into account the final goods and services produced in a country during a period of time. However, the expenditure method excludes the expenditures that are done on the purchase of shares, bonds, and second-hand goods.

Detailed explanation-4: -The official measure of GDP does not include measurements of leisure time available, nonmarket production, production in the underground economy, the distribution of income, or production externalities (e.g., pollution).

Detailed explanation-5: -When using the expenditures approach to calculating GDP the components are consumption, investment, government spending, exports, and imports.