UPSC Exam  >  UPSC Questions  >  Which of the following is/are not included in... Start Learning for Free
Which of the following is/are not included in GDP calculation?
1. Foods and services provided free of cost by a NGO
2. Housewives' works
3. A doctor treating his own children
4. Goods in the inventory 
  • a)
    1 and 2 only
  • b)
    1 ,2 and 3
  • c)
    2 and 3 only
  • d)
    1,2,3 and 4 
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Which of the following is/are not included in GDP calculation?1. Foods...
Only those goods and services which have a monetary value affixed to them are considered while calculating GDP.
View all questions of this test
Most Upvoted Answer
Which of the following is/are not included in GDP calculation?1. Foods...
Explanation:

The Gross Domestic Product (GDP) is a measure of the total economic output of a country. It is calculated by summing up the value of all final goods and services produced within the country during a specific time period. However, there are certain items that are not included in GDP calculation. Let's discuss each of the given options:

1. Foods and services provided free of cost by a NGO:
NGOs (Non-Governmental Organizations) often provide goods and services to the society for free. These can include food, medical services, education, etc. Since these goods and services are not exchanged for monetary value, they are not included in GDP calculation. Including them would overstate the actual economic output of the country.

2. Housewives' work:
Housewives perform a significant amount of work in households, such as cooking, cleaning, taking care of children, etc. However, since these activities are not a part of the formal market economy and no monetary transactions are involved, they are not considered in GDP calculation. This is because GDP focuses on measuring the value of goods and services produced in the market.

3. A doctor treating his own children:
When a doctor treats his own children, there is no monetary transaction involved. The service provided is not being exchanged for money, so it is not included in GDP calculation. In order to be included, there needs to be a market transaction where money is exchanged for the service.

4. Goods in the inventory:
Goods that are produced but have not yet been sold or used are considered to be in the inventory. These goods are not included in GDP calculation because GDP only measures the value of final goods and services. Including goods in the inventory would result in double-counting, as they would already be accounted for when they are eventually sold or used.

In conclusion, GDP calculation excludes goods and services provided free of cost by NGOs, housewives' work, services provided without a monetary transaction, and goods in the inventory. These exclusions are made to ensure that GDP accurately measures the value of goods and services produced within a country's market economy.
Explore Courses for UPSC exam

Similar UPSC Doubts

Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer?
Question Description
Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer?.
Solutions for Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Which of the following is/are not included in GDP calculation?1. Foods and services provided free of cost by a NGO2. Housewives works3. A doctor treating his own children4. Goods in the inventorya)1 and 2 onlyb)1 ,2 and 3c)2 and 3 onlyd)1,2,3 and 4Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev