Question

One of the following will not be counted as part of GDP in year 2018 Production...

One of the following will not be counted as part of GDP in year 2018

  1. Production of 20 cartons of Bone Marrow Biopsy Needle by Firm A in year 2018

B) Newly built apartments by hospital

C) Purchase of 120 million riyals worth of shares in Firm A

D) Government spending of 2 million riyals to improve health care system in year 2018

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Answer #1

GDP includes market value of goods and services produced in an economy. That good cannot be a second hand good as trading of second hand goods results in double counting problem of GDP. GDP does not includes welfare payments and stock/bonds issued in the economy.

Thus option C is correct.

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