what points to be considered while estimating gdp
Answers
Gross domestic product (GDP) is the standard indicator used across the globe to indicate the health of an economy. In India the GDP is calculated in two different ways.
1. Economic activity (at factor cost) - The performance of different industry sectors is known with the help of the factor cost GDP details. The sectors considered in this cost are :
Agriculture, forest and fishing.
Mining and quarrying.
Manufacturing.
Electricity, gas and water supply.
Construction.
Trade, hotels, transport and communication.
Financing, insurance, real estate and business services
Community, social and personal services.
2. Expenditure (at market prices) - The expenditure based GDP calculations indicate how different areas of the economy are performing. It includes the expenses towards :
Household consumption.
Net investments.
Government costs.
Net trade.
Answer:
The final value of goods and services produced or rendered in a country in a year is taken into account for calculating GDP. The only services which are not included in calculating GDP is the work done by a housewife at home , since it doesn't involve any monetary transaction.
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