Chapter 10, Problem 6MCQ

To determine

The factor which is not included in GDP.

Explanation of Solution

GDP is the measurement of final goods and services produced in an economy in a financial year.

The calculation of GDP includes domestically produced final goods and services such as capital goods, change in inventories, and newly constructed structures in financial years. 

It doesn’t include intermediate goods and services (to avoid the double entry problem), used goods, stocks and bonds, foreign-produced goods and services (imports), and other items.

Thus, GDP doesn’t include imports.

Option “b” is correct.