Exams › SSC CGL (Prelims) › General

Which of the following is typically excluded from the calculation of National Income using the Expenditure Method?

1. Transfer payments like old-age pensions
2. Private final consumption expenditure
3. Gross domestic capital formation
4. Net exports

Correct answer: Transfer payments like old-age pensions

Solution

In the expenditure method, only spending on currently produced final goods and services is included. Transfer payments like pensions are excluded because they are not payments for current production.

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