Which of the following activities can be included in the calculation of GDP.?

Question

Which of the following activities can be included in the calculation of GDP.

1. The income of a dentist
2. Social security payment received by a retired factory worker.
3. Interest earned against foreign securities
4. Money received by Sana when she sells her Economics book to a book buyer.
5. Rent received on a two-bedroom house.
6. Households’ activities of a housewife.

Answer 1

1) & 5)

Here is why:

2) - redistribution of existing income; not counted
3) - not domestic (will count in GNP, though)
4) - resale item (this was counted in GDP when Sana bought the book initially, assuming it was new)
6) - not income

Answer 2

1 4 5

Answer 3

.The income of a dentist
.Rent received on a two-bedroom house.
.Interest earned against foreign securities

Answer 4

1. everything else is transfer of assets. Include 3 if you are calculating GNP.