Which of the following is NOT a component of GDP? (2023)
Practice Questions
Q1
Which of the following is NOT a component of GDP? (2023)
Consumption
Investment
Exports
Taxation
Questions & Step-by-Step Solutions
Which of the following is NOT a component of GDP? (2023)
Step 1: Understand what GDP stands for. GDP means Gross Domestic Product, which measures the total value of all goods and services produced in a country.
Step 2: Learn the main components of GDP. The main components are Consumption (spending by households), Investment (spending on capital goods), Government Spending (spending by the government), and Net Exports (exports minus imports).
Step 3: Identify what is NOT a component of GDP. Taxation is a way for the government to collect money but does not directly measure production of goods and services.
Step 4: Conclude that taxation is not included in the GDP calculation.
