Which of the following is likely to be excluded from the gross domestic product (GDP) of a country?

Question

Quizplus · Accepted Answer

The value of drugs being sold in a vacant lot is likely to be excluded from GDP as it represents an illegal activity and is not a part of the formal economy.

Answer: C
 While the service of a doctor treating a patient in a hospital is a part of the formal economy and generates income, it is likely to be excluded from GDP as it may be classified as an intermediate consumption rather than final consumption.

Answer: D and E
 The value of a new house and new furniture bought by an individual are likely to be included in the GDP as they represent final consumption and contribute to the overall production of the economy.

Which of the Following Is Likely to Be Excluded from the Gross