ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The purchase is not included in GDP at all, but the value of services the computer gives is included in consumption each year.

Detailed explanation-2: -The major items included in the calculation of GDP include business investment, net exports, individual consumptions, and government expenditures. The GDP calculation does not transfer payments, purchases, and sales of used goods, intermediate goods, etc.

Detailed explanation-3: -Understanding Gross Domestic Product (GDP) The calculation of a country’s GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).

Detailed explanation-4: -Investment includes spending on new equipment and structures, including households’ purchases of new housing. Government purchases include spending on goods and services by local, state, and federal governments.