Which of these is deliberately left out of GDP?

The salary of a government clerkCorrect answerYour answerA pension paid by the government to a retired employeeCorrect answerYour answerThe fees charged by a private hospitalCorrect answerYour answerThe rent paid on a commercial buildingCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

GDP counts the value of goods and services produced in the year.
A pension is a transfer payment: money changes hands, but nothing is produced in exchange for it in that year.
A salary, a hospital fee and a rent are all payments for something currently supplied, so all three are counted.

Worth noting

Subsidies, scholarships and unemployment benefits are excluded for the same reason. Counting them would count the same output twice.

Concept: Why transfer payments are excluded from GDP
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsNational income and official statistics

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Ten questions from Indian Economy & Institutions, at your own pace.

Which of these is deliberately left out of GDP?

Explanation